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FINANCIAL T 


No. 28,726 


PUBLISHED IN LONDON AND FRANKFURT 

Wednesday March 17 1982 


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NEWS SLM\iAR\ 




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MANUFACTURERS & SUPPLIERS 
OF BUILDING & CHEMICAL PRODUCTS 
FOR THE CONSTRUCTION INDUSTRY 


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GENERAL 


BUSINESS 


Brezhnev 

missile 

freeze 


Gold up 
by $9i; 
dollar 


attacked firmer 


Soviet President Leonid 
Brezhnev's announcement of a 
freeze on the deployment of new 
medium range nuclear missiles 
West of the Urals was yester- 
day criticised ■ by Western 
leaders: 

President Reagan said the 
freeze did not go fax enough 
and Mrs Thatcher said the 
Kremlin was seeking to main- 
tain its “total superiority” in 
medium-range missiles. Bach 
Page; Thatcher, Page 10 

Angola raid 

Smith Africa safid its troops' 
wiped out a major Swap© base 
and killed 201 Namibian 
guerrillas in a weekend raid 
into Angola. Page 4 

Anderton call 

Manchester police chief Janies 
Anderton said council police 
committees should be abolished 
to keep police independent of 
local politics. Page S 

Baby food ban 

Nestle, the world's largest pro- 
ducer of substitute baby foods, 
said it would end sales prac- 
tices which discourage breast 
feeding. Back Page 

Rape case move 

Scotland's ' Lord Advocate told 
the Edinburgh High Court he 
would not oppose a Glasgow 
woman's bid to bring a private 
prosecution for alleged rape. 

Von Bufow guilty 

Danish-born Glaus von Billow 
was found guilty in Newport, 
Rhode Island; on two .counts 
of trying to murder his heiress 
wife with insulin -injections. 

Brussels clashes 

More than 180 were injured 
when 7,500 striking Belgian 
steelworkers protesting about 
job losses fought running 
battles with police in Brussels; 

Car bomb scare 

The bomb squad detonated a 
controlled blast on a suspect 
car in London after diverting 
a Royal procession. The car did 
not contain explosive. , 

Youths acquitted 

Four black youths were 
acquitted at the Old Bailey of 
murdering disabled . youth 
Terry May during an “orgy” of 
violent rioting in South London 
last June. 

Classroom assault 

The teacher told by a London 
magistrate she could expect to 
be assaulted won her case 
against a parent who knocked 
her to the classroom floor. 

Nicaragua alert 

Nicaragua’s left-wing govern- 
ment declared a 80-day state of 
emergency after accusing the 
U.S. of supporting sabotage 
attacks. Page 5 

Warsaw appeal 

Solidarity’s Warsaw leader. In 
hiding since martial law was 
imposed in December, called for 
a mass campaign of support 
for the union. Page 2 

Rates forecast 

The average domestic rate bill 
in England is expected to rise 
next month by about 15 per 
cent — from £245 to £28L 
Page 7 


• GOLD rose to finish at 
$323. Page 24 

• DOLLAR rose to DM 3L3775 
(DM 2.3735). SwFr L88 
(SwFr 145770) and Y24L40 
(¥240.35). its trade-weighted 
index rose to 114 (113.6). 
Page 24 

• STERLING was up 5 points 
to $145055, and, was firmer at 
DM 4295 (DM 4285). 
SwFr 32975 (SwFr 329) and 
FFr 31.05 (FFr 10293). Its 
trade-weighted index was 90.6 
(902). Page 24 

• GILTS ran out of steam 
after their recent strength. The 
Government Securities Index 
lost 0.14 to 6823. Page 30 

• EQUITIES were drab. The 
FT 30-share index lost 3.4 to 
close at 562.4. Page 30 

• WALL STREET was up 123 
to 80222 at nrid-session. Page 28 

• COCOA May quotation closed 
at £2.108.50 a tonne, down £43 
on the day after reports that the 



International- Cocoa Organisa- 
tion, had been ** rotating” buffer 
stocks. Page 29 . . 

• GUINNESS PEAT agreed to 
sew its 30 per cent stake in 
Unite!, the U.S. money broking 
and computerised financial 
services operation, in a deal 
which wiL raise over £18m. 
Sack Page 

• MONOPOLIES and Mergers 
Commission references blocked 
the- contested Rowntree 
Mackintosh £76m bid for 
Huntley and Palmer Foods* and 
the agrded Id £12Rm bid for 
Arthur Holden. Back Page 

• CCP NORTH SEA Associates, 
the offl. exploration company, has 
switched its recommendation to 
shareholders' from a £15m 
Charterhouse Petroleum bid 
agreed last month to a £l526m 
hid by Tricentrol. Back Page 

• CAR T.F! TV development 
go-ehead is expected from the 
Government on Monday. Bads 
Page 

• STOCK EXCHANGE 4s 
making modifications to its 
proposals for increased charges 
oh share and gilt-edged trans- 
actions after market users’ 
criticism. Page 8 

• NEB hopes to invest a total of 
*£20m in assisted regions of the 
UK in the next three or four 
years. Page 8 

• PANCONTINENTAL M i m i n g 
and Getty Oil of Australia have 
been given conditional approval 
for mining the Jabhuka 
iifanh»n deposits in the 
Northern Territory. Page 23 

• BROOKE BOND Group pre- 
tax profits fell from £19.33m to 
£lS22m in the sec months to 
end December. Page 21; Lex, 
Back Page 


Briefly . . - 


Journalists* co-operative news- 
- paper Nottingham News is to 
close on Friday. 

Two paintings by Prince 
Charles went on show at a 
London gallery. 

Mexico’s Finance Minis ter 
David Ibarra resigned. 


• IMI, the fabricated products 
and components group, reported 
pre-tax profits for. 1981 £4.4 3m 
behind at £2&81m, in spate of a 
second . half figure of £1 3.61m 
(£11.14m). Page 21; Lex, 

Back Page 

• J. BIBBT, the Industrial and 
agricultural group, increased 
pre-tax profits by 12.58 per cent 
to £22.18® in the 53 weeks to 
January 2. Page 20 


CHIEF PRICE CHANCES YESTERDAY 

(Prlees in pence unless otherwise indicated) 


RISES 

Amalfi Dist Prods 80 + 4 

Bibby (J.) 3W + 10 

Brasway 74 + 5 

Copy d ex 52 + n 

Ductile Steels 122 + 4 . 

Guinness Peat ... 68 f 

Ladbroke 1W + “ 

Pearson Longman . 252 + 20 

Kara! Elect ■ 370 + 10 

Scott (David) ..... 27 + 2* 

Whessoe 87 + 7 

Wolseley-Hughes ... 374 + 4 . 
CCP North Sea ... 1S5 + 12 
Charterhouse Pet.. 70 + 6 

Cluff Oil - 135 + 10 

Blyvoor 400 + 24 

Driefonteia 968 + 68 

Gid Mns Kalgoortie 175 + 10 
Marievale 88 + 8 


Panconttoental 110 

Pres Brand .£L4# 

Western Dee9 — £U§ 

FAILS 

BAT Eads 413 

Barclays Bank ... 450 

Barrett Devs 265 

British Sugar 420 

. Bronx Eng 25 

Brooke Bond 54 

Geers Gross 130 

. Grand Met — 203 

. Hawker SJddeley ... 306 

. Holden (A.) 158 

Huntley & Palmer . 84 

Lloyds Bank 440 

NatWeSt Bank ... 430 

WCG Energy 75 

Tricentrol 172 


+ 10 
+ 14 
+ i 


— • 8 

- 15 

- ii 

- 20 

- 4 

- 3 . 

- 3 

- 5 

- 10 

— 23 
=- 21 

— 15 

— 15 

— 5 

— 4 


EUROPE INTEREST RATES FIRM 

U.S. industry index up 
as banks lift prime 


BY OUR FOREIGN AND FINANCIAL STAFF 


UJS. INDUSTRIAL production 
increased in February, the first 
rise for seven months. Publica- 
tion of the figures by the 
Federal Reserve Board coin- 
cided with a prime rate increase 
by several U.S. banks and signs 
of firmer interest rates in Euro- 
pean centres. 

The industrial production 
figures and the interest rate 
charges coincided with a warn- 
ing from Dr Henry Kaufman, 
the influential Wall Street 
economist, that high interest 
rates, would choke any U.S. 
economic upturn later this year. 

Yesterday's developments in- 
cluded: 

• The industrial production 
figures showed a rise of L7 per 
tent last month following a 
sharp 2.5 per cent fall in 
January. The Fed warned, how- 
ever, that the figures did not 
necessarily signal the end of the 
recession. ’ 

Four U.S. banks — Chase 
Manhattan, Morgan Guaranty, 
First National Bank of Chicago 
and Bankers Trust — raised their 
prime rate by half a percentage 
point to 16.5 per cent The move 
brought them back into line 
with most other large banks 
which had held their lending 
rate to best corporate borrowers 
at 16.5 per cent last week when 
the four cut their rates. 

In Washington Dr Kaufman, 
testifying ‘ before the House 
budget committee, said he 
experted the federal budget 
deficit in fiscal 1983 to total 
§135bn (£75bn). He urged tax 


155 


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135 


SaatanaRy 


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USJnriustrial 
I Production! 


□mum 


I960 


T9&1 1982 



and monetary policy changes 
including a halving of the 
planned 10 per cent tax cut next 
July and elimination of the 
proposed 1983 tax cut 

• In Europe hopes of further 
falls in interest rates receded 
as domestic money market rates 
edged higher. Eurodollar 
interest rates rose another 
} percentage point, giving a 
rise of one percentage point 
over the last week. 

• In London, the Bank of 
England gave generous help to 
the money markets but this 
did not prevent the seven-day 
interbank rates from rising A 
to 14ft. Any further rise wall 
put pressure on the banks to 
increase their base rates which 
they reduced last week. 

• On European foreign, exchange 
markets, the dollar continued to 
move higher. Sterling was one 


of the few currencies also to 
move upwards against the 
dollar. The pound’s trade- 
weighted index dosed 0. 3 
higher at 90.6. 'The dollar rose 
to its best level for several 
months against the Japanese 
yen, closing at Y24L4 against 
Y239.9 the previous day. 

• The French franc continued 
to lose ground within the Euro- 
pean Monetary System. The 
Eurofranc rate rose sharply for 
the second day running. The 
three-month rate topped 20 per 
cent, a rise of more than four 
and a half percentage points 
over the last two days 
In Washington the Fed 
commented that the U.S. 
February industrial production 
Continued on Back Page 
Interest rates threaten 
recovery in U.S* Page 5 
Money markets. Page 24 


Europe cool on Reagan call for 
tighter Soviet sanctions 


BY PAUL CHESERJGHT, WORLD TRAM EDITOR 


THE UR. initiative to bring 
the Western allies together to 
impose a programme of financial 
sanctions against the Soviet 
Union is foundering in the face 
of European reluctance to wage 
what is being described as 
“ economic war.” 

The West German Govern- 
ment responded coolly to the 
U.S. proposals, put forward on 
Monday by Mr James Buckley, 
the UR. Under-Secretary of 
State. The tJK. Government 
wall be equally unsympathetic 
in talks with Mr BucHey today, 
officials said in London. 

Oh his tour of major Euro- 
pean capitals Mr Buckley is 
understood to be seeking: 

• A halt to all subsidised export 
credits — that is, the use of 
official funds to bridge the gap 
between the interest rate the 
Soviet Union pays on credits 
and the market cost of the 
funds; 

• A bait to official export 
insurance guarantees; 

• A 90-day moratorium on all 
o&Lciaily-backed credits; and. . 

• More talks within that 90 


In an effort, to head off a. 
clash on economic andforetgB . 
policy, Mr George Shnjtz, th$ 
former UR. Treasury Secre- 
tary, is- expected to visit 
European capitals on behalf 
of President Reagan before 
the Western economic summit, 
planned for - June in Ver- 
sailles. • 

He is expected to underline 
the major common Interests - 
of the members of the 
Western alliance, writes 
Jonathan Carr from Bonn. 

days on credits policy towards 
the Soviet Union. 

Mr Buckley is also apparently 
presenting to European govern- 
ments a questionnaire designed 
to elicit information on export 
credit policy and actions. 

The presentation of these pro-. 
posaJs by Mr Buckley represents 
a shift in the emphasis of UR. 
sanctions policy towards the 
Soviet-Union. 

In December President 
Ronald Reagan announced a 


series of unilateral controls on 
the movement of goods . and 
technology to the Soviet Upton, 
including equipment, for the 
Siberia-West Europe gas pipe- 
line. 

These controls, however, 
affected contracts already signed 
by European companies for 
pipeline equipment using UR 
components. 

• Attempts by the UR. to imple- 
ment these controls have run 
- into sharp opposition from Euro- 
pean governments, the most 
vocal of which has been West 
Germany. This has led the U.S, 
to promote the financial pro- 
posals. 

Those, however, are seen by 
European officials as going fax 
beyond the original purpose of 
the December sanctions. That 
was intended to signal sharp 
disapproval of the Soviet role 
in imposing martial law in 
Poland. 

The adoption of the financial 
proposals would be the equi- 
valent of waging economic war 
on the Soviet Union, officials 
said. 


Cementation wins Oman order 


BY ANDREW TAYLOR 

ONE OF the largest overseas 
orders to be won by a stogie 
building contractor has been 
awarded to Cementation Inter- 
national, part of the Trafalgar 
House group. The contract is 
for a £2 15m university complex 
near Muscat, the capital of 
Oman. 

The announcement has been 
timed to coincide with this 
week’s State visit by the Sultan 
of Oman. 

John Blown is expected 
shortly to announce a £50an 
contract to supply power station 
turbines to O man. 

The contract to Cementation 
is supported by a 10-year £115m 
export credit underwritten by 
the Export Credits Guarantee 
Department md arranged by 
Morgan Grenfell. The loon 
carries a fixed interest of 8 peer 
cent, with repayments due to 
start -after completion, of the 
project in 1886. 

Under the financing arrange- 
ments, . British suppliers ‘ of 


goods and services for the 
Qaboos University project could 
gain export orders totalling 
more than £130m as part of 
the total £215m cost of the 
project 

Cementation, which won the 
design contract for the Qaboos 
University last September, said 
that the Prime Minister had 
shown a keen interest in the 
negotiations during her visit to 
Oman 10 months ago. It called 
the contract a major coup for 
British exporters. 

The bunding contract pro- 
vides for five faculty buildings, 
student residences, staff accom- 
modation, a library, conference 
centre, an administration block, 
a mosque, a 3, 000-seat amphi- 
theatre and sport and recreation 
facilities. 

Building is expected to start 
next month, with completion 
timed for the start of the 1986- 
87 academic year. 

The university, 25 miles from 
Muscat, is the country’s first 


Advisers to, the project in- 
cluded the' universities of 
Oxford, Nottingham and 
Southampton. 

The architects are YRM 
International of London. The 
British firm D. G. Jones and 
Partners has been appointed by 
tiie Omani Government as 
quantity surveyors and cost 
consultants. 

In the year to last September 
total overseas construction — 
related turnover of Cementa- 
tion’s parent, Trafalgar House, 
was £230m. The bulk of this 
work was carried out by 
Cementation, so the award of 
the Omani contract will be a 
significant boost to the com- 
pany’s order book. 

Previous contracts carried 
out by Cementation in Oman, 
ail to or near Muscat, include 
the Royal Guest House; the 
Rnwi Valley Hotel; and the 
Medinat Qaboos township. 
Work on these projects was 
completed about two years ago. 


CONTENTS 


Ulster: an economic disease which may 

yet prove fatal . . 18 

Singapore: cracks appearing in Lee’s 

“rugged society” 19 

Quality v quantity: what is wrong with 

British aid * 19 

•Energy review: oil glut confuses Egypt’s 

policy . 4 

Sri Lanka: Government copes with the 
results of dash for growth 4 


Technology: telephone check on credit 

cards 12 

Commercial law: Fidelity insurance for 

acts of 'non-employees 14 

Gardens today: planting without tears or 

puddles ; 14 

Management: Daini chi — high-flyer in 

Japan*s robot industry 16 

Editorial comment: public sector policy; 
India lg 


American News ™ 6 

Appofaitmanta UK 7 

Appointments Tirtf. 27 

Art* — 17 

Boas Rats* 27 

Commodities 29 

Com parties UK 20-23 

Crossword 17 

Dilai Lain. Guide ... 17 

European (tows ... 2.3 

Euromericets 25 

Euro Opts. 22 

FT Actuarial - 30 


Foreign Ex cha nges 2a 

Inti. Companies 25-27 

Loader Pago — v 

Utters - — P 

Lax 34 

London Opts 22 

Management 16 

Man & Mattaro ~ « 

Mining — 23 

Money Markets 24 

Overseas Nows .« * 

Parliament 1° 

Racing M 


Share Information 32, 32 

Stock Maries**: 

London 30 

Wan Street 28 

Bourses 28 

Technology ......... 12 

TV and Radio • 14 
UK Nawn 

General . 7, 9 

Labour 11 

Unit Trusts 24. 31 

Weather 34 


World Trad* News B 

INTERIM STATEMENTS 

Brooke Bond 2D 

M. P. Kant 23 

Zambia Copper 34 

ANNUAL STATEMENTS 
Great Mehofaon 22 

Drayton Premier ... 33 

Esse* Water 22 

IMI 23 

Standard Ufa 15 

Starling Trust - 22 


For latest Share Index phone 01-246 8026 



Wave of 
share sales 
in Tokyo 

By John Makinson in London 
and Charles Smith in Tokyo 

GROWING CONCERN about 
Japan's economic performance 
prompted a wave of selling on 
the Tokyo stock market yester- 
day. The widely followed Nikkei 
Dow Average tumbled 162 
points to 6.917, its lowest level 
for 18 months. 

The market was not re- 
assured by news that the Gov- 
ernment, in an attempt to 
stimulate the flagging economy, 
had decided to execute in the 
first half of the year a “ major 
portion ” of public works pro- 
vided for in the 1982 budget. 

A siring of poor results from 
leading Japanese companies has 
underlined the official figures 
which show a decline in gross 
national product in the last 
quarter of 1981. The persistent 
weakness of the U.S. economy 
and the threat of further trade 
restrictions have done nothing 
to relieve the gloom. 

Yesterday’s stock market 
drop, the biggest of the year, 
was accelerated by a steep fall 
in the share price of Hitachi, 
a bell-wether for the whole 
Tokyo market. Hitachi recently 
made a large equity issue in 
New York and the share price 
is believed to have received sub- 
sequent support from Japanese 
securities companies. But yes- 
terday the support evaporated 
and the price collapsed from 
Y582 to Y5501 

Private investors have been 
heavy sellers after last week's 
decision by securities com 
pairies to tighten the collateral 
requirements for stock pur- 
chases. These technical factors 
have played a major role in the 
past few days, but the main im- 
petus behind the selling 

' Continued on Back Page 
UR. Japan dispute: Brussels 
trade talks. Page 6 
Brokers lower corporate 
profit forecast Page 27 
World stock markets. Page 28 


BAT Industries 
buys another 
U.S. store chain 


BY OAVH> CHURCHILL. £N LONDON AND 
DAVID LASCELLES IN NEW YORK 


BAT INDUSTRIES, the world’s 
largest tobacco multinational, 
further strengthened its diversi- 
fication into U.S. retailing yes- 
terday with an agreed 8310m 
(£172m) bid for Marshall Field, 
the Chicago-based department 
store chain. 

It is BATs biggest foray into 
retailing in the U.S.. where it 
owns • the Gimbel and Saks 
department stores. 

in the UK it has also diversi- 
fied into retailing with (he 
acquisition of International ' 
Stores and the Argos discount 
chain over the past decade. 

Marshall Field has 77 up. 
market department stores. In 
the year to January 31 19S1 
it recorded sales of $lbn and 
made after-tax profits of S20.7m. 
For the four quarters to Octo- 
ber 31 19S1 sales where $1.2bn 
and after-tax profits $23.2m. 

The takeover is being carried 
out by BATHS. BATs manage- 
ment company for its U.S. 
interests. These include Brown 
and Williamson, the country's 
third largest tobacco manufac- 
turer. 

The bid will be a cash offer 
at $22.50 per common share 
and $45.90 for preferred shares. 

It is seen in the U.S. as a 
rescue of the store group from 
the unwelcome attentions of 
Mr Carl Jcahn. head of Icahu 
Capital Carp, a U.S. securities 
firm. Mr Icahn has built up a 
30 per cent stake in Marshall 
Field, provoking an archnonious 
battle with the company and 
forcing it to reluctantly consider 


NEB hopes to raise 
over £50m from Inmos 

BY JOHN ELLIOTT, INDUSTRIAL EDITOR . 


£ in New York 

Mar. « 


previous 


Spot Ismi70ai85 !S 1.1950-7990 
l month !0.234>.28 pm -0.20-0.35 pm 
3 months ,0.75-0.75 pm 10.72-0.77 pm 
12 months 2.70-2.80 pm 12.75-2.85 pm 


The National Enterprise Board 
hopes to raise more than £50m 
from the private sector next 
year for Inmos, the controver- 
sial Anglo-American micro-chip 
company in which it has a 75 
per cent stake; 

Plans for selling more than 
50 per cent of the company 
in either one or two tranches 
to institutional or industrial in- 
vestors are being drawn up by 
the NEB. part Of the British 
Technology Group, which hopes 
to gain approval from the Gov- 
ernment this summer. 

Disposing of shares in Inmos 
— which has yet to make profits 
— will become one of the group's 
major priorities once it has 
finalised arrangements for hiv- 
ing off Nexos, its office systems 
subsidiary, to various com- 
panies including ICL. 

Nexos has been a major prob- 
lem for the NEB. which stands 


Independent survey 
reveals outright 
lift-truck leader 


Everyone claims their trucks are 
best. So why not ask a wide range of your 
fellow track users which make of truck 
they think is best? 

Business and Market Research Ltd. 


without our or the industry’s knowledge, 
a totally independent and unsponsored 
1981 survey. 200 companies were quest- 
ioned about their experience with the 
ten leading lift truck makes available in 
Britain today. Since most companies ran 
mixed fleets, direct on-the-job compari- 
sons were also possible between makes. 

Asked to grade these makes accord- 
ing to the seven most important 
aspects of design, economy and 
efficiency, companies large and small 
soon pinpointed the overall leader. 


Reliability: No. 1-Lansing Bagnall. 

High Quality; No. 2-LansmgBagnalL 

Service back-up:. No. 1-Lansing BagnalL 

Good Design: No. 1-Lansing Bagnall. 

Lowoperatingcost: No. 1-Lansing BagnalL 

Longlife: No. 1-Lansing Bagnall. 

Competitive price: Equal First- 

LansingBagnalL 



Bearing in mind the wide range of . 
makes and track types involved, further 
comment would appear superfluous. 

So for a practical demonstration of 
what these results can mean fbf: 
business, contact your-lc 

Lansing Depot right j 
For this is no 1 
second-best 


t 


socking a large company to take 
it over. 

Mr Icahn said yesterday he . 
would contest the bid by “ all 
available moans.” 

Marshall Field shares were 
trading at $15 before Mr Icahn 
started buying them late last 
rear. More recently, they have : 
been (roiling ai $22. News of 

the bid boosted them by 2i ' 
mils to S24J on Wall Street . 
yesterday morning. 

Jn London yesterday BATs 
share price fell Sp to close at 
413p. 

BAT has been trying to 
diversify for lhe past two 
decades but has been relatively 
unsuccessful. Profits from its 
lohaero interests still account 
far some 7D per com of total 
earnings, even though the com- 
pany hoped to reduce this level 
lo about 60 per cent with its 
acquisitions. 

Apart from retailing, it has 
diversified into cosmetics, 
paper and packaging. 

Its last major takeover in the 
U.S. was in 1976 when it bought 
the Appleton Papers group for 
£J33m. 

Marshall Field's stores are 
spread thinly throughout the 
U.S., but BAT believes its ! 
operations complement its exist- 
ing retail network. 

If the merger does not take - 
place, for whatever reason. ’ 
BATUS will have first refusal 
in buying Marshall Field's 
Chicago division. 

News analysis. Page 23 
Lex, Back Page 


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to lose its £30m investment in . 
the company. This amount is . 
likely to be written off in the 
NEB*s next annual accounts. 

The NEB is tightening con- 
trol of its subsidiaries. Inmos . 
is expected to have to make 
savings of £5m this year by in- J 
troducing economies and re- , 
arranging its development plans 
to remain within tiiSit budgets 
recently approved by the NEB 
as part of its 1982-83 corporate 
plan. 

It is receicing more than 
£90m from the Government 
through the NEB and in other 
grams and loans. Most of its 
current expenditure is devoted 
to building a factoxy in New- 
port, South Wales. 

The new funds — which might 
come from outside the UK — 
would be used for two main 
purposes. They would reduce 

Continued on Back Page 


/ 


stratiQttot , 



LANSING 


British built fr/ British I ndustr y 


Phone Lanang at: Basingstoke (0256) 3131 (General Enquiries) or contact your local dennf. 

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Financial Times Wednesday March 17I9S2 


.. : • J** - 


>■ . 


EUROPEAN NEWS 


Call for mass 
ca mp aign to 
back Solidarity 

BT CHRISTOPHER BOHNS Ki IN WARSAW 


THE .JVARSAW leader of the 
Solidarity union Mr Zbigniew 
Bujak, who has been in hiding 
since martial law was imposed 
last December, has called for 
a mass campaign of support for 
the union through petitions and 
letters to the Government 

His appeal follows the publi- 
cation by the government com- 
mittee on trade isaions last 
month of proposals on how 
Poland's 'unions' should be 
organised in the future. These 
implicitly reject Solidarity's 
political role, its traditional 
structure and most of its 
leadership, now interned. 

Mr Bujak’s cadi is published 
in Solidarity clandestine 
Warsaw news-sheet dated 
March 13. “ Every member, 

every activist, all the surviving 
union authorities have a duty 
to demand the reinstatement of 
Solidarity," he says. “ Signed 
letters should be sent to the 
government committee on trade 
unions with this demand." 

He also urges people to show 
their support by not buying 
newspapers on Wednesdays and 
switching out the lights in. toeir 
homes between 9 pm and 
9.30 pm on the 13th of every 
month. On that day people 
should also stop won; for a 
while at midday. Union 
members are urged to wear 
their badges. 

In an earlier policy docu- 
ment. Mr Bujak rejected the 
Government's proposals on 
union structure. Support for 
this stance comes from a union 
news-sheet in Poznan in the 
west of the country. This says 
that a switch to a trade structure 
from the traditional regional 
structure for the union would 
“in effect paralyse it." 

Meanwhile, other under- 
ground news-sheets filtering 
through to Warsaw from the 


provinces show that, despite 
tactical differences, all 
Solidarity activists' reject the 
idea of political terrorism arid 
any form of armed resistance 
to the Military authorities. 

In Silesia, for example, a 
“temporary co-ordinating com- 
mission" warns people not to 
become involved in " diversion- 
ary ” organisations. It says that 
‘‘sabotage and terrorist actions’* 
are provoked by the security 
police and serve as “ a pretext 
for more repression.” 

However, in contrast to Mr 
Bujak's appeal, . the Silesian 
commission tells its supporters 
not to take any part in any 
“ referenda." “ We’ve already 
got our union,” it says. 

North-west of Warsaw, Jn 
Torun, thfe “ temporary 
praesidium ” of the local 
Solidarity leadership appealed 
last month to students at the 
university there “not to adopt 
any open forms of protest for 
the time being. 

The Torun underground 
leaders told union members 
that they must help the victims 
of repression, set up study 
groups and support protest 
actions ordered by the leader- 
ship. 

They suggest however, that 
a compromise must be achieved 
between the military authorities 
and the union. “It is obvious 
that the union's demands can- 
not he achieved nor can martial 
law continue permanently,” they 
write in their news-sheet. 

Another news-sheet in Torun, 
though, takes a much less con- 
ciliatory line. It reject the 
government offer to discuss the 
future of the unions. “In the 
present situation, the accept- 
ance of the invitation by any 
Solidarity member would he a 
betrayal of the union and its 
imprisoned leadership.” 


Italy’s anti-terrorism war leaves Right unscathed 


BY OUR. ROME CORRESPONDENT 


TWO SEPARATE .hearings,- in 
surroundings that .could not be 
more different, underline the 
contrast between the success of 
the Italian authorities in com- 
bat ting left-wing terrorism, 
and their failure to unravel the 
mysteries of the ultralight. 

In Verona, the trial is now 
underway— and with unusual 
promptness — of 16 members of 
the Red Brigades. They, are 
charged with ' the kidnap of 
General James Lee Dozier, who 
was rescued from a Padua hide-, 
out by Italian police on Janu- 
ary 28. 

- In Rome, meanwhile, the two 
Houses of Parliament are meet- 
ing in special- session to decide 
whether three former mini sters, 
including two ex-Premiers, 
should he sent before the 
Constitutional Court, to answer 
allegations that they helped 
cover up secret service involve- 


ment in the Milan bank bomb* 
ing in December 1969. 

That blast, in which 16 people 
died, is generally assumed to 
have been of right-wing origin. 
It is also reckoned to. have 
marked the beginning of- Italy's 
enduring ordeal by terrorism. 
But In more than 12 years, no 
one's guilt has ever been proved 
in the courts. 

Arms caches 

The Dozier trial, on the 
other hand, symbolises the in- 
roads made against the far Left 
since General Dozier, a .Nato 
officer, was taken prisoner last 
December 17. It also threatens 
to become a forum of argument 
over whether police have, made 
those inroads in part thanks to 
the widespread use of torture 
against terrorist suspects. 

According to Sig Francesco 
Spmelii, Under-Secretary at the 


inferior Ministry. 385 people 
have been arrested on terrorism 
charges since the Dozier kid- 
napping: 340 from the Red 
Brigades and their sister 
organisations, and 45 from the 
extreme Right. Police, more- 
over, have found 35 arms caches 
and "safe houses" do. tibia' past 
three months. 

He also claimed that only 10 
per cent of those- captured -.-had 
refused to co-operate wife the 
authorities. This collaboration, 
he insisted; stemmed from, the 
terrorists’ own" realisation 'that 
their political aims had failed. 

Amid -mounting controversy, 
however, several ' of- those 
detained are maintaining— to- 
gether .with. '.tfai?ir 'defence' 
lawyers, and magistrates — that 
this change of heart has been 

helped by systematic ill-treat- 
ment and torture. This does 
not appear to be so, though, 


in the case of Antonio Savasta, 
leader of the croup which held 
Gen. Dozier. He has admitted 
c arryi ng out 17 killings in 
recent years. Evidence Jrom 
Savasta has been perhaps the 
biggest single factor behind the 
police 'successes. 

None the less, Sig-Virginio 
JRogoni, the Interior Minister, 
has been forced to schedule a 
second parliamentary statement 
on the matter next week. He 
is expected to reject the sug- 
gestions. again and to re-state 
the Government's commitment 
to full civil rights for tijose in 
custody. 

For its part, the Verona court 
has lent .indirect support to the 
torture dlaims by ruling that 
statements made to police by 
the accused when their lawyers 

were not present cazmot he 

admitted as evidence. 

The prosecution case even so 


is not considered Vikely 1 o bo 
seriously weakened, thanks to 
the confessions made by Savasta 
to magistrates investigating the 
Dozier case. 

Sfg Spinelli" also confirmed 
that I- 500 convicted and sus- 
pect left-wing extremists were 
in jail, while a further 200 were 
being sought. The correspond- 
ing figures for right-wing ter- 
rorists were 450 and less than 
90, he said. 

Lockheed scandal 

These statistics do little to 
conceal the basic inability of the 
authorities to get to the bottom 
of the most serious right-wing 
outrages since 1969, amid 
recurring suspicions of con- 
nivance (if not worse) on the 
part of leading politicians and 
the discredited former secret 
services. 


The ex-ministers* who' are 
appearing before Parliament 
are Sis Mariano Rumor, a for* 
mer Christian Democrat Prime 
Minister, Sig- Mario Tan«$i. a 
Social Democrat, ' former 
Defence Minister (already con- 
victed in the 1976 Lockheed 
bribes scandal), and Sig Gtalfo 
Andrcotli. Premier between 
1976 and 1979. ■ 

The indications are that they 
will be absolved and the' ciw 
dosed. But the Milan, bombing 
ilsclf remains a mystery— as 0o 
the 197-1 Brescia blast in which, 
eight people died, and-thcISSO 
explosion at Bologna statiott in 
which 85 people were killed. ! r - 
More than IS months after 

the most deadly terrorist: inci- 
dent m modern times in Europe. 

magistrates are still searching 

for a firm and lasting lead. And 
with every month that passes, 
thedr hopes grow sHmmer. 


Italian car design is now a world ieader. Rupert Cornwell talks to the founder of Italdesign 

Sig Giugiaro harnesses art to expertise 


THE GREY AND WHITE poly- 
styrene model on the table 
looks like a passenger bus 
shrunk to the dimensions of a 
car. The chassis barely dears 
the ground, but the vehicle 
seems as if it might be as tall 
as the traditional London taxi. 
"Do you realise,” said Sig 
Giorgetti Giugiaro, his hand 
quickly sketching out the shape 
on a sheet off a nearby memo 
pad, “that a car like this would 
be as short as a Volkswagen 
Golf but have more room than 
a Mercedes 500?" 

The model in question is a 
miniature of the "Capsula," a 
concept for the passenger car 
of the future, of which a full- 
scale mock-up will be on display 
at the Turin motor show next 
month. And the Capsula, one 
might say, encapsulates the 
philosophy of a man who is in- 
creasingly regarded as the lead- 


ing car and industrial designer 
of Italy, and perhaps the world. 

The names alone of Italian 
coacbbuilders — Pininfarina, Ber- 
tone, Ghia and Zagato — convey 
luxury and beauty for those who 
can afford the best. Giugiaro on 
the other hand has ushered in 
a new era in Italian design, by 
harnessing more than ever 
before the country's instinctive 
genius for style to the practical, 
everyday needs of the mass 
market. 

He has been responsible for 
his fair share of Maseratis, 
Ferraris and the like. But a 
place in motoring history is 
assured by his influence on the 
development of the ordinary 
family car. 

Sig Giugiaro has been earn- 
ing his living from industrial 
design since he was taken on at 
the age of 17 by Fiat’s Centro 
Stile in Turin. From there he 


moved first to Bertone, then to 
Ghia, before setting up an his 
own in 1968. His 'company, 
Italdesign, is housed in a flat 
hangar-like building at Mon- 
calieri, a few miles south.of. the 
city. Unlike Pininfarina and 
Bertone, which have separate 
manufacturing operations, the 
company has concentrated 
exclusively on design.. 

The first big popular success 
of Sig Giugiaro and Italdesign 
was the Alfasud, launched back 
in 197L Then came the Passat, 
Golf and Scirocco family for 
Volkswagen, which not - only 
helped rescue West Germany’s 
biggest motor company but 
heralded Sig Giugiaro's arrival 
as a force beyond Italy’s 
frontiers. 

More recently. Fiat has leant 
heavily on Italdesign. for its 
model range. The Panda 
Utility is his, as is the Lancia 


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Delta, while the eagerly awaited 
Tipo Uno, - due to be unveiled 
at the end of this year as a 
replacement for the Fiat 127, 
was largely conceived by 
Giugiaro. 

Sig Giugiaro’s art lies almost 
in the concealment oE art. “I 
start with basic economic con- 
siderations, what people want 
and need. The important thing 
is that what I design is prac- 
tical and works. Tbe aesthetics 
come later;" In any case, he 
says, “aesthetics are something 
in constant development A 
new design, a new fashion, 
starts off by being accepted by 
an elite, then everyone gets 
used to them.” 

The idea extends to other 
fields. Sig Giugiaro has designed 
cameras and sunglasses for 
Nikon, electric razors for 
Philips and sewing machines for 
Italy's Necchi concern. Ital- 
. design is currently working on 
a project for the municipality 
of Turin, to revamp the cfcty’s 
amenities; If it goes through, 
Italy's industrial capital will 
have Giugia-ro-designed litter- 
bins, traffic lights, road signs 
and even children's games in its 
parks. 

But cars still account for 90 
per cent of his work and that 
of the 200 stylists and engineers 
working flat out at Ital-Design 
Design is - one pant of the. car 
industry that has, if anything, 
benefited from the sector’s 
difficulties, as the importance of 
a winning idea becomes ever 
larger. And .the Capsula is 
.logical development - of Sig 
Giugiaro’s work to date. 

The trend, in an Age of 
speed liimts and costly oil, is 
towards fuel efficiency and com- 
fort. Sig Giugiaro’s fundamental 
idea, of malting cars not neces- 
sarily longer, but taller, to 
improve' passenger comfort and 
space, has a brilliant simplicity. 
The Banda in particular, is a 
step along -the path away from 
the cramped, low-slung cars of 
the 1960s and 1970s. 

The Capsula carries the pro- 
cess. further. “I got the idea 
from looking at those tourist 
buses where the luggage is 
stowed under the passenger sec- 
tion. If you did -the same with 
cars, then you could get a real 
increase in passenger room. 
Engineers are now shotring that 
road holding can be toe -same, 
even with . vehicles higher, off 
the road.” 

Sig- Giugiaro also points to toe 
appeal of ‘Britain ’s-Range Rover, 
bought at considerable expense 
by people who mostly don’t 
really want a cross-country 
vehicle but one with extra 
room and visibility in ordinary 
conditions. 

The designer's life, of course, 
can be frustrating, not least 
over compromises that have to 
be made with foe car companies, 
whose money it is that will be 
spent. Then again, says Sig 
Giugiaro. “ the clients look at 
iny suggestions in the context 
of today's models, when the 
design won’t be on the streets 
for four years.” 

■ To tackle these problems, a 
team of mechanics and 
engineers work on the indus- 
trial and technical implications 
of a design as. it evolves. The 
process can extend to - the - con- 
struction of a working proto- 
type, costing on average' L300m 
to L400m (£173.000) ready 18 
months after the first pencil 
lines on a drawing board. 

Nothing better underlines Sig 
Giugiaro’s (relevance to the 
ordinary world than his success 
in Japan, that temple of mas 
production. “ If I’m independent 
today, that's in part thanks to 
them. I’ve been working with 
the Japanese since 1976.” That 
work includes — apart from the 
Nikon cameras— the- Isuzu 
Piazza car (now in production) 
and a design from 1977 that is 
faithfully reproduced in . the 
Honda City model launched .this 
year. 

"I've never been interested 
in production,” he says. “ But if 
this were. Japan, toere'd be a 
factory here, 'too. Of course, 
Italy, wpth Its individualism is 
stimulating. But if I ever chose 
anywhere else. I'd go to Japan, 
where I could do 10 times more. 
But -then again, the fact it .is 
easier there might just send me 
to sleep.” 


FINANCIAL TIMES, publiihad daily 
except Sundays and holiday!, U.S. 
subscription rates S365.00 par annum. 
Second Ciaaa postage paid at Naw 
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Sig Giugiaro at work on new designs. 


x 1- 



“The 
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Dame Peggy Ashcroft 


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I wish my busy life had allowed me' to do more to. . 
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TbaVis why a’legacy to Help the Aged will, continue • . 
work that I believe needs to be extended. 

Loneliness and frailty need kindly help as well as 
pensions and appalling hunger among the old 
overseas needs humanity as well as food. 

Because I am lucky enough to keep active and enjoy 
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if you have a similar attitude and would like to • 
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.The Ihdo-British 
Business opportunity 7 

A FULL DAY CONFERENCE ;,U-' 
AT THE LONDON HILTON HOTEL; 
ON WEDNESDAY 24 MARCH 1982 ' 

The Conference wiff be inaugurated by -tie- Rt 
Ron. John Blffen, Secretary of State for Trade 
and speakers will include Sir Cyril Pitts, Sir 
John Buckley, Mr Kcshnb Mahindra, Sir John 
Thomson and the Earl of Limerick. It will pro- 
vide an up-to-date and authoritative picture d 
the Indian business scene and the expanding 
opportunities it offers to British industry. -“ 1 - 

Enquiries and bookings; to. the organised, 
BASATA (The British and South AsianTrade 
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Street, London WCl <phone: 0i-379 7400). : v 


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■EHnamnaL .Times .Thursday March IS 1982 


Financial Times Wednesday March 17 1982 




EUROPEAN NEWS 





t 


French current 
account slips 
further in red 


BY DAVQ) HOUSEGO IN PARIS 


FRANCE’S CURRENT account 
dipped further into the red last 
rear, reinforcing fears of con- 
' tinuing pressure on the balance 
of payments. According to 
'Ministry of Finance figures, the 
current account deficit widened 
to FFr 40.6m (£3.69bn) from 
FFr 33.1-bn (£3.01hn) in 1980, 
after two exceptional years of 
surplus. 

For the year as a whole a 
marginal improvement in the 
trade deficit was offset by a 
decline in the surplus on Invis- 
ibles. This picture masks 
the sharp worsening of the trade 
deficit in the second half of the 
year. This has continued into 
1982. 

Thus, on balance of payments 
figures, a trade gap of FFr 4.9bn 
(£4.4 5m) in the second quarter 
of 1981 widened to FFr 12.8tra 
(El.lSbn) in the third quarter 
and to FFr 17.4bn (£1.58bn) in 
the final quarter. Behind 
has been a slowing down of 
food and industrial exports and 
a particularly sharp rise in im- 
ports in the 3ast quarter, in line 
with the recovery of . the' 
economy. 

The balance of payments 
deficit for the year shrank, 
however, to FFr 48. 3 bn 


(£4.39bn) from FFr 52Jbn 
(£L75bn) in 1980. The surplus 
on invisibles fell to FFr 7.7bn 
<£700m) from FFr 19.2bn 
(£1.74bn), largely as a result 
of lower oil trading receipts 
and reduced earnings from 
Services tfed to international 
trade. By the last quarter, how- 
ever, it was picking up. 

The deficit on the longterm 
capital account also widened 
last year to FFr llAfan 
<£1.03bn) from FFr 4.5b n 
(£409m) thanks to increased 
investment abroad in the first 
half and a sharp rise in port- 
folio funds being moved abroad 
during and after the election 
campaign. 

Foreign selling of French 
stocks and. French purchases of 
foreign stock resulted in the 
deficit on portfolio investments 
rising from FFr 6.Sbn (£81 8m) 
in 1980 to FFr 17.7bn (£L6bn) 
■laist year. 

This trend reversed in the 
last quarter as French direct 
investment abroad slowed and 
foreign investment in France 
increased by more than 
FF r lton, passing from 
FFr 2.5bn (£227m) in the 
third quarter to FFr 3.6bn 
(£3 27m) in the last. 


Gandolfi agrees to head 
Italian energy concern 


BY JAMES BUXTON IN ROME 

TEE ITALIAN Government 
yesterday overcame an import- 
ant hurdle in its efforts to 
resolve the- problems of ENI, 
the state energy concern. It 
finally persuaded Sig Enrico 
Gandolfi. to accept the position 
of special commissioner of the 
group, to replace its present 
chairman, Sig Alberto GrandL 
Sig Gandolfi, the 68-year-old 
chairman of Saipem, ENTs 
pipeline subsidiary, initially 
Tefafed to take the job for per- 
sonal reasons. These are 
thought to have included reluct- 
ance to become immersed in 


the political furore over the 
company's future. 

Blit Sig Giovanni Spadolini. 
rbe Prime Minister, and Sig 
Gianni de Michelis, the Minister 
for State Shareholdings, have 
succeeded in changing his mind. 
Sig Spadolini is to meet Sig 
Grandi today. 

The Government wanted his 
resignation to facilitate the 
introduction of a new system 
of state control of ENI, and to 
replace him with a Socialist 
Sig Grandi is associated with 
the Christian Democrats. 


East bloc’s 
debt 
to West 
rises 11% 

GENEVA— Eastern Europe’s 
net indebtedness. to the West 
rose fay 11 per cent to a record 
total of $8G.4bn (£4tSbn) last 
year, according to a United 
Nations study. A sharply higher 
amount owed by the Soviet 
Union accounted lor the bulk of 
the increase, it said, 

B ulgari a was the only one 
among the seven countries sur- 
veyed which lowered its com- 
mitments. according to the 
figures prepared by the UN 
Economic Commission for 
Europe. 

The study so&ests that the 
substantial appreciation of the 
U-S. currency actually may have 
reduced the dollar value of East 
Europe’s indebtedness by as 
much as SRm. beca use some 
countries have relatively Ugh 
percentages of debt in other 
currencies, in rinding D-Marks 
and Swiss francs. 

Poland maintained the largest 
net debt at $22.4Sra, compared 
with $22_Lbn in 1980. Its con- 
vertible currency debts, in- 
cludes SS.ffbn to other East 
European countries. 

The Soviet Union’s debt to 
the West was estimated to have 
increased by 44 per cent from 
$13.5bn to $19.5bn. 

The survey quotes reports 
that Moscow increased its gold 
sales in the West from 90 tons 
in 1980 to 200-300 tons last 
year. 

It also points out that the 
Soviet Union appears to have 
ran up a deficit of $2.1bn In its 
trade with the West and other 
non-Co mm unist countries, the 
first since 1976. 

• A steering group of nine 
Western creditor banks wall hold 
a meeting in Zorich today on 
questions linked with Romania’s 
1981-82 debt rescheduling nego- 
tiations, a spokesman for the. 
Union Bank of Switzerland said 
yesterday. 

The meeting will not deal with 
reactions of other creditor banks 
to rescheduling proposals made 



CLASH OF 
STEEL 

masked and helmeted, a 
striking Belgian steelworker 
aims his catapult at a line of 
riot police during violent 
clashes in Brussels yesterday. 
About 50 people were re- 
ported injured as 10.000 
demonstrators, worried about 
job losses In their industry, 
hurled bricks, bottles and ball 
bearings at police who 
countered with tear gas, water 
cannon and baton charges. 
Shop and hotel windows were 
broken and a ran ami an un- 
occupied building set alight as 
the police struggled to keep 

the demonstrators to (help 

agreed route. 


Haughey restores instinct to Irish politics 


BY BRENDAN KEENAN, DU BUN CORRESPONDENT 


IT WOULD probably be unkind 
to suggest that the new Irish 
Frontier, Mr Charles Haughey, 
is pleased about (the difficulties 
encountered by Mr James Prior 
over fads plans for Northern 
Ireland devolution. Neverthe- 
less, he is entitled to feel a 
certain sense of justification. 

It is not so much ffag* ; Mr 
Haughey is against such 
internal schemes for Ulster. In 
his inaugural speech — which 
may have been misinterpreted 
in London and Belfast — he 
gave a guarded welcome to 
moves to bring agreement 
between the communities. • 

It Is more that Mr Haughey 
believes chat such proposals, 
involving cross-commmirty gov- 
ernment. are inherently un- 
workable, given the political 
framework in Northern Ire Land. 
The eveztis of this week, especi- 
ally the rejection of Mr Prior's 
proposals by the Official 
Unionist Party, are likely to 
confirm him in hds views — 
views be will undoubtedly ex- 
press to President Ronald 
Reagan when he lunches with 


him today (St Patrick’s Day) 
in the White Rouse. 

Northern Ireland is the sub- 
ject on which Mr Haughey has 
been clearest and most con- 
sistent On most other issues 
— particularly economic ones— 
he begins his second term of 
office with more unanswered 


lined to parliament the com- 
prehensive, signed agreement 
he had made with Mr Haughey, 
binding the incoming govern- 
ment to an exceptional level 
of aid to Mr Gregory's inner* 
Dublin constituency. 

The reactions were instrue* 
tive. As the list of expensive 


As the Irish economy continues to languish in 
debt and the question of Northern Ireland re- 
mains as unresolved as ever, there are serious 
misgivings about the ability of the new Premier, 
Mr Charles Haughey, to make good his promise of 
recovery. 


questions than when he began 
his first, in 1979. 

The doubters almost cer- 
tainly include many members 
of Mr Haughey’s own Fianna 
Fail party, who have been 
public witnesses to the extent 
to which their leader will go 
to ensure a parliamentary 
majority. On the day the new 
Government came to power, 
the left-wing independent 
depnty, Mr Tony Gregory, out- 


commitments grew. Mr 
Haughey’s supporters lapsed 
into a glum silence, while the 
opposition parties, although 
they had lost office, grew in- 
creasingly cheerful. 

The Gregory deal was quin- 
tessential Haughey. It was a 
brutal exercise of personal 
power. There was no consul- 
tation with his party, and it 
showed seam regard for pro- 
cedural niceties. Mr Haughey 


willingly agreed that Mr 
Gregors' should nominate the 
chairman and five members Df 
a new statutory body for 
Inner Dublin 

Mr Haughey’s style of 
politics, in short, is now well- 
known. Bu* there are still two 
view’s about his overall abilities 
and the impact he is likely to 
have if he gets a reasonable 
term in office. 

His alleged, pre-election 
unconcern about the country's 
financial position is first 
explained as confidence in 
Ireland’s future, and this is 
contrasted with the gloomy 
views of Dr Garrett FitzGerald, 
the former Premier, which, bay 
the Haughcyites. have damaged 
the country’s standing abroad. 

Opponents, on the other 
hand, claim that Mr Haughey 
is endemically short-sighted as 
a politician 

The future direction of Irish 
economic policy may depend on 
which of these views is correct, 
but the record is ambiguous. 
Mr Haughey started his last 
term of office arguing that the 
country must start paying its 


way. and finished it. IS months 
later, with the country seriously 
in debt but claiming that there 
was no financial crisis. 

The beginning of the new 
administration also produced 
conflicting clues. The Gregory 
deal and the axing or demotion 
of pcrsunal opponents suggested 
lhai politics were going w come 
before national interests. On 
the other hand. Mr Haughey has 
not abandoned Dr FitzGerald’s 
financial targets, and the early 
increase of excise duties on 
drink and tobacco would seem 
to .suggest a sense of urgency. 

Twice WTitren-off as a has- 
been and once charged (and 
cleared) of involvement m 
Republican arms-smuggling. Mr 
Haughey has fought a succession 
of political battles. As a result, 
the barriers to the outside world 
appear to have grown higher, 
and at least one of the inner 
circle doubts if Mr Haughey 
takes anyone’s counsel but his 
own. But as economic and 
Anglo-Irish difficulties grow if 
Mr Haughey does have what it 
takes, tiicTe could hardly be a 
better time to prove it. 


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earlier this month but will be 
devoted to procedural questions. 

Union Bank, which will chair 
the meeting, has no information 
so far on reactions from other 
banks, he added in reply to- 
questions. 

Agencies 


EEC to continue saying energy 


BY JOHN WYU2S M BRUSSELS 

EUROPEAN Community Gov- 
ernments promised in Brussels 
yesterday not to relax their 
efforts to reduce energy con- 
sumption, m spite of a fall 
since the end of last year of 
$1.20. or about 3.5 per cent, in 
the average prices they are 
paying for a barrel of oiL 

This estimate of a $33-a- 
barrel average cost of imported 
oil was given to EEC energy 
ministers by the European Com- 
mission. It was accompanied 
by a stem warning from Vis- 
count Etienne Davignon, the 
Energy Commissioner, of pos- 
sible dangers stemming from 
the reduction in oil stocks, 
which has recently been en- 
couraged by falling energy 
prices. 

Citing International Energy 
Agency figures. Viscount 
Davignon said EEC stocks on 
April 1 will average about 120 
days' consumption at 1981 
levels, or about the same 


volume as last April.' .But, he 
said, current trends • suggest 
that stocks might fall by 10m 
tonnes or the equivalent of 
eight days’ consumption by 
October 1_ The total would 
then amount to 117 days’ con- 
sumption, compared with the 
125 days in stocks last October. 

-If a severe whiter rwere to 
coincide with a cutback in Opec 
oil supplies, he warned, the 
Community might be facing a 
third oil price shock. He urged 
—and- fee Council agreed— feat 
stocks be frozen at the obliga- 
tory level of 90 days’ supply at 
1980 consumption rates. 

In a joist' declaration, the 
energy ministers reaffirmed 
their commitment to energy 
consumption targets which 
would lower the Ten's depen- 
dence on imported oil from 50 
per cent to 40 per cent by 1990. 
They observed that the 3.9 per 
cent drop in energy consump- 
tion last year, and the 8.3 per 


cent' fall in crude ail use, 
reflected changes in consump- 
tion patterns, a more efficient 
use of energy, and the relatively 
low level of economic activity. 

They also acknedlged that any 
recovery in economic activity 
could lead to a resurgence of 
emergy demand. 

Ministers spent most of fee 
day coping wife a Jong agenda 
mposed on them by a welter 
of Commission documents 
analy sing energy investment 
and consumption trends in the 
Community. 

More specifically, feey indi- 
cated that the Council of 
Ministers might be ready soon 
to adopt a directive requiring 
fee display an al household 
washing machines and dish- 
washers of the appliance’s 
energy consumption da kilowatts 
per hour. For fee moment, 
however, final dapotion is being 
held up by fee reservations .of 
Britain, France and Greece. 


The difference between our First Class 


ks 

NOVO 

NOVO INDUSTRI AS 


EXCHANGE OF 

INTERIM CERTIFICATES FOR B SHARES 
ISSUED IN CONNECTION WITH CONVERSION OF 
. NOVO’S US$-BOND LOAN 

The Interim . Certificates for Dkr. 3,828,400 B Shares issued In 
connection with the conversion of bonds in a nominal amount of 
US$ 1 . 634,000 may now be exchanged for share certificates. 

The Interim Certificates, which are dated up to and including the 
30th December, 1981, bear the following letters and numbers: 

Letter FNo. 9566-10511 at Dkn 4,000 
Letter D No. 379- 415 at Dkr. 1,000 . . 

Letter C No. ' 194- 201 at Dkr. 500 
Letter A No. 352- 385 at Dkr. 10O 

When surrendered, these Interim Certificates must be provided 

with Coupon No. 6 and subsequent coupons. 


The exchange w3! take place at ■ 

COPENHAGEN HANDELSBANKA/S 

issue Department 

Hobnens Kanal 2, 1091 Copenhagen K 

The Interim Certificates should be fisted in numerical order when 
surrendered. 

Bagsvaard, the 17lh March, 1982 


NOVO INDUSTRI A1S 



and their First Class in Europe. 

cancelled 

* *M 


/ 


Today, British Airways and most European airlines are eliminating First Class on flights in 
£urope. Lufthansa is.not only keeping First Class now; we have every intention of keeping 
First Class in the future - to each of our 121 destinations worldwide. If you have connecting 
flights in Europe, therefore, Lufthansa allows you to fly First Class on every leg of the 
journey. In the extra comfort and style to which you have become accustomed, like the 
passenger on top. 



Lufthansa 


Consult yourTteval Agencyor our timetable for exact details on all of our flights. 


* 


i 









Financial Times Wednesday March 17 1982 


OVERSEAS NEWS 


China opens second 
offshore oil area 
to foreign bidding 


BY TONY WALKER IN PBC1NG 
CHINA has opened a second 
offshore area to bidding by for- 
eign oil. companies. The New 
China News Agency said yester- 
day that 41 companies are to be 
invited to indicate an interest 
in bidding for exploration rights 
in the 42,000 sq kilometres in 
the Yellow Sea adjacent to 
Hainan Island, China’s southern- 
most point. 

The first invitations to regis- 
ter an interest in bidding for 
exploration rights in China's 
waters were sent out last month. 
So far, 15 of the 46 companies 
to have received the invitations 
have indicated they intend to 
bid. 

In the first stage, some 

150,000 sq km were opened up 
in the Yellow Sea, the South 
China Sea near the mouth of 
the Pearl River, and in waters 
off Hainan. Companies notified 
of areas to be opened up in 
the second stage have until 
April 25 to register an interest 
in bidding. 

The Chinese are to organise 
the auction of rights to explore 
and develop oil reserves in their 
waters by stages. In the first 
stage — the one now being under- 
taken — companies are invited to 
register an interest in bidding. 

In the next stage they will bid 
for actual exploration rights. 

Exploration contracts are ex- 
pected to be completed by late 
this year or early next year, 
allowing full-scale drilling to 
begin. 

March 30 is the deadline for 


46 companies to register as 
Interest in exploring for oil in 
the first area released for bid- 
ding. Most interest among for- 
eign companies is focussed on 
the Pearl River estuary where 
surveys have indicated there 
are large deposits of oH. 

A further indication of quick- 
ening interest among foreign 
companies in possibilities 
offered by the development of 
China’s offshore oH reserve is 
this week's opening of a $5m 
(£2.7m) petroleum industry ex- 
hibition in Pe ki ng. 

The exhibition, jointly spon- 
sored by the Sodely of Petro- 
leum. Engineers and the Chinese 
Petroleum Society, includes 
exhibits from many of the 
world’s largest manufacturers 
of equipment for use in the 
petroleum industry. 

Mr Clyde Barton, president of 
SPE — an international organi- 
sation of engineers and techni- 
cians involved in the extrac- 
tion and processing of oil and 
gas — said yesterday the market 
place in China for foreign-made 
products in the oft industry 
would equal that of many areas 
in the world which have high 
potential for development. 

It has been estimated it w£ll 
cost some $20ba to develop 
China’s offshore oil reserves, 
and Mr Barton estimates that m 
the early stages- much of the 
high -technology win be supplied 
by overseas companies. 


Nicholas Colchester, recently in Colombo, analyses the liberalisation of Sri Lanka’s economy 

IMF keens an anxious foot hovering over the 



thk economic policies of the 
past compete visibly with those 
of the present on the narrow 
roads of Sri Lanka. The buses 
of the Central Transportation 
Board, battered and trundling 
relics of 20 years of state con- 
trol. represent the discarded 
strategies of the Bandaranaika 
era.' Weaving past them race 
private sector buses spawned by 
the new policies of President 
Junius Jayewardene: smaller, 
faster, more adventurous In 
their search for passengers, but 
also pricier, they seem an apt 
symbol of free enterprise un- 
leashed. 

Sri Lanka is, indeed, an object 
lesson in liberalising the 
economy of a developing coun- 
try. The country, provides a 
representative case: rich in agri- 
cultural potential, poor in 
minerals and oil, equipped with 
an ex-colonial infrastructure and 
burdened with a potentially 
explosive ex-colonial racial 
problem. The island lias also 
experienced the benefits and 
discomforts of indebtedness to 
the International Monetary 
Fund. 

Above all, Sri Lanka is 
interesting as a test case be- 
cause of Che cleaxcut way in 
which the Jayewardene -Gov- 
ernment changed economic 
course when it came to power 
in 1977. It discarded many 
years- of introversion, state con- 
trol and public sector domina- 
tion, and substituting accept- 
ance, of private and foreign 
investment, reductions in sub- 
sidies, a Boating of the cur- 
rency, but also grandiose public 
development projects financed 
via a more spendthrift attitude 
to public and international debt. 




Under President jayewardene (left), Sri Lanka has launched Itself into 
an era of more libera] economics, higher growth and higher indebted- 
ness, The tea plantation tended by the women above is part of the 
country’s economic backbone. 


The vital statistics of the 
economy responded in the fol- 
lowing manner : In the four 
years 1978-81 real growth in the 
Sri Lankan GDP averaged 6.5 
per cent, slowing gradually to 
5.S iper cent in 1981. This 
compared with growth averag- 
ing 3.6 per cent per annum in 
the years 1970-77. An unem- 
ployment rate of 13 per cent is 
now claimed by the Finance 
•Mini stry, compared with 20 per 
cent when the Government .came 
to power. 

On the other hand the rate 
of inflation surged sharply, 
reaching 26 per cent, accord- 
ing to the official consumer 
price index, in 1980 before drop- 
ping to some IS per cent in 
1983L This compared .with an 


average rate of 5.7 per cent in 
the years 1970-77. Unpublished 
prices indices suggest a much 
higher actual rate of inflation 
— perhaps 25 per cent in 198L 

At the same time Sri Lanka's 
current account deficit deterio- 
rated sharply. It was equivalent 
to over 19 per cent of GDP in 
1980, improving to 15 per cent 
in 198L In the mid-1970s Sri 
Lanka's current account was 
essentially in balance. As a 
result Sri Lanka's external debt 
has risen fast -to over Rp 29b a 
(TLS.$3.12kn) by the end of last 
year. The cumulative debt bur- 
den nevertheless remains 
relatively low by the standards 
of most -developing countries. 

These broad “ before and 
after” figures suggest an over- 


ambitious. dash for growth 
.- during a period when the 
second oil shock and falling 
commodity prices were making 
development an uphill struggle 
for the whole of the third 
world. 

They also reveal the impact 
of the corrective action imposed 
by the IMF. The Fund sus- 
pended its lending to Sri Lan k a 
in July 1980 and insisted on a 
clamp-down on public expendi- 
ture, in 1981. 

Nineteen eighty -two has 
opened with Government 
officials friendly towards the 
IMF and ready to admit that 
public spending had run out of 
control during 1980. Both the 
IMF and World Bank are 
pleased with the way control 


was restored in 1981 — the 
Government deficit dropped 
from 22 per cent of GDP to 
14.5 per cent — but are looking 
askance at the budget For 1982 
which predicts a fresh upturn 
in Government borrowing » 
some 17 per cent of expected 
GDP. Even that appears opti- 
mistic. 

There were two paradoxes in 
what President Jayewardene 
calls his bloodless revolution. 
The first was the way in. which 
a decision to “privatise" the 
economy led to such a rapid 
increase in public spending, an 
increase which, in . fact, de- 
prived the private sector of 
resources just when it was 
being allowed to re-establish 
itself. 

In the initial euphoria the 
ministries in Colombo outdid 
one another in grandiose invest- 
ment projects and were not 
sufficiently reined in by a co- 
ordinating authority. Govern- 
ment investment reached one- 
fifth of GDP in 1980. 

Some of these projects 
promised intangible returns — 
the urban housing projem. 
for instance, or the new parlia- 
mentary complex at Kotte. Both 
appeared to be putting the 
icing before the cake. 

Others made more long term 
economic sense. The giant 
M ah a weli project, .involving 
four dams and the resettlement 
of 140,000 families, . should 
ultimately make a great contri- 
bution to the economy in the 
form of energy and irrigation. 
But it is now clear that too 
much was attempted too 
quickly and that the available 
aid was spread too thinly. The 
quadrupling of the cost esti- 


mates to 32.5bn has left the 
Government tlnancially.exposed. 

The other paradox . is that 
privatisation was not applied to 
the motor of Hhc economy— the 
tea and rubber sectors, which 
together account for half of Sri 
Lanka's exports. The policy, of 
, hmd reform and nationalisation, 
pursued by the previous regime i 
had clearly run these two 
sectors down: tea output, was 
stagnating at 210m kg per year 
in the mid-1970s compared sfith ' 
240m kg in the ntid-lWOs., ’ 1 . 

Rubber production remained 
static throughout the 1970s 
about 140m Kg. Yet after four ' 
years of ' the new regime tee , 
production, in 1981 was stiU 
210m kg white belated replant- • 
ing resulted in * rubber- crop 
last year of only 120m kg. 

Meanwhile in the rice- mq. 
tor, which is admittedly much < 
easier to turn round, a liberal. ' 
isation of the market has had a 1 
notably • beneficial effect? The t 
new mobility of fertiliser ami « 
access -to good seed - straits 4 
means that the rice crop Win - 
probably be 11 0m-l 15m bushels} 
in 1982. hr 1977 a crop of Win; 
bushels was considered an -all- ' 
time record. ... . - 1 

With his position .bolstered' 
by a shift to proportional ' 
representation, by disarray -In 1 ' 
the opposition and by the un- 
doubted sense of Hyetinesthat. 
his policies have injected fcto I 
the economy, President Jays- 
wardene has a solid chant* of : 
continuing with his revolution > 
into the late 1980s. >• 1.' 

But the momentum already, 
established will take some con*' 
trolling and suggests that the-' - 
IMF’s foot will stay htweHag 
anxiously over the brake. 


India plans policy switch to boost output 


BY K. 1C SHARMA IN NEW DELHI 


THE Indian Government is 
expected soon to announce 
major policy changes which it 
hopes will boost industrial out- 
put by at least 10 per cent in 
19S2-S3, after growth of 8 per 
cent In 1981-82. 

The National Development 
Council, the country’s supreme 
economic decision-makfer, agreed 
at a meeting last weekend that 
it was essential to remove all 
obstacles to increased invest- 
ment and production “including 
any Government policies, rules 
and procedures which come in 
(the way of fall utilisation of 
existing capacities.” 

The Ministry of Industry is 


working on measures which are 
thought to include amendments 
to the Monopolies and Restric- 
tive Trade Practices Act which 
curbs expansion of the so-called 
“large .. industrial : monopoly 
houses." They are now expected 
to be encouraged to invest in 
what are considered key 
industrial sectors. 

This is to be accompanied 
by changes in pricing poHries 
to enable manufacturing com- 
panies to secure reasonable 
returns -from their investments. 
At present, formal and informal 
price controls have inhibited 
fresh investment 

A recent example is the 


introduction of a dual pricing 
policy for the cement industry 
which is now required to sell 
part of its production art low, 
fixed prices to approved 
categories of users and the 
remainder at market prices. It 
is expected that such a policy 
will be extended. 

The Ministry is also working 
on specific schemes and institu- 
tional structures to encourage 
investment from expatriate 
Indians and the flow of foreign 
technology into the country. - 

It is possible, bat not certain, 
that tiie liberalisation wifi, 
affect foreign investors,, who 
already occupy the same cate- 


gory as the “large industrial 
monopoly houses.” 

Higher industrial production 
is needed both to ensure con- 
tinued economic growth 
(because a plateau seems to 
have been reached in agricul- 
ture) as well as to- reduce trade 
deficit, which is expected to 
rise above Rs55bn (£3J2bn) for 
the second successive year. 

Renter reports:- Mr. Dimitry 
Ustinov, tiie Soviet Defence 
Minister, flew to ‘ Bombay to 
ihspeot -a large Indian naval 
.base yesterday after assuring 
New Delhi that Moscow will 
continue to assist it in defence 
matters. 


Israel and Egypt back 
away from border row 

BY DAVID LENNON IN TEL AVIV 
ISRAEL AND EGYPT yes ter- the deputy Premier and Foreign 
day backed away from confront Minister, which is in Israel for 

talks on the final arrangements 
for the return of Eastern Sinai 
to Egypt on April 26. 


tation in the border dispute at 
Taba on the Red Sea, which had 
threatened to hold up the final 
Israeli withdrawal from Sinai 
next month. They also reduced 
tension surrounding a suspen- 
ded visit to Israel by Mr Hosni 
Mubarak, the Egyptian Presi- 
dent, by anoundng that the trip 
wiH take place, though no date 
has yet been set. 

The air of good will was en- 
gendered by a determinedly op- 
timistic Egyptian delegation 
headed by MrJKamal Hassan Ali, 


On the disagreement over the 
exact demarcation of the inter- 
national border between the 
two countries after. April 26, Mr 
Ariel Sharon, tiie Israeli De- 
fence Minister, said: “The bor- 
der dispute is going to be 
solved." He made this announce- 
ment after" a meeting "in Jeru- 
salem between Mr Hassan Ali 
and Mr Begin. ' 


South Africa troops wipe 
out Angola Swapo base 


MARZENFLUSS BASE, Namibia . 
— South African troops have 
wiped oat a major guerrilla 
staging post during a cross- 
border operation in a desolate 
mountain area of southwestern 
Angola, officers commanding the. 
raid claimed yesterday. 

The officers said a unit of 
45 mainly black soldiers killed 
201 . South West . African 
People’s Organisation (Swapo) 
guerrillas during an attack last- 
ing seven and a4ialf hours on 
■Saturday, suffering three losses 
of their own. They recovered, 
large caches of food and arms, 
they added. . . 


South African troops. , stiff 
held the rocky Gambeno.YoBey, - 
14 miles inside Angola, as the i 
South African autirorites'ferried ! 
in a small group of jonnttsts i 
and officers by helicopter, f ■ ' } 

The officers said the area 
woutd.be held probably uptil : 
the end of. the. week while fite; 
supplies uncovered ..in tin 
operation were ferried oat 

Due white officer at the camp 
site, hs face st® blackened 
and his camouflage uniform 
torn from the fighting, said they 
had oanght the guenraBas by 
smprise.- Kezrter. 


ENERGY REVIEW 


World glut throws Egypt’s oil policy into confusion 


.. i 


By Anthony McDermott in Cairo 


EGYPT HAS suffered as much 
as other oil exporting countries 
as a result of its income falling 
as prices decline because of the 
world oil glut. But for the next 
decade or so Egypt can look 
forward — the world market 
permitting — to a gradual in- 
crease in its oil production 
capacity. 

Until recently it was pro- 
ducing about 670.000 barrels a 
day of which 200.000 b/d were 
available for export after local 
consumption and foreign oil' 
companies had taken their con- 
tractual share. 

The late President Sadat 
characteristically used to talk 
of production levels of lm 
barrels a day by 1980 but more 
as a prestige rather than realis- 
tic target 

However as Egypt’s earnings 
rose (the first net exports were 
in 1976 and worth $3S0m) this 
lm barrels a day conveniently 
became $lbn of annual income, 
now a figure long since sur- 
passed. 

But Mr Izzeddin. HUai, the 
Deputy Premier responsible for 
energy was probably not 
exaggerating when at a 
conference on natural gas and 
economic development in Cairo 
last month he forecast that the 
lm b/d production level could 
be reached in 1984-S5. 

Income however has fallen 
drastically. In 1980-81 when 
production averaged about 

640.000 b/d it amounted to 
$2.76bn. For 1981-83 the initial 
forecasts were $3bn. Egypt's 
peak asking price for its Mor- 
gan light crude of 32.7 degrees 
API was $47.50 per barrel at 
the beginning of 1981, but the 
first of each month this year 
has seen a $1 fall : it is priced 


ENERGY SOURCES 
IN EGYPT 
1380-2000 

I960 1990 2000 


Total demand 
(m tonnes 

oil equivalent) ' 155 


37 *8 


Percent hydro 45 20 15 

Percent gas - - 

and oil 55 60 40 

Percent nuclear — 20 40. 

Percent 

renewables — — 5 

Note: Assumes 8% a year economic 
growth. 


this month at $32 per barreL 
Mr Ali Nigm the Deputy Gover- 
nor of the Central Bank of 
Egypt tdd the FinandM Times 
recently that oil income is now 
expected to total $2.3bn — a 
considerable drop which must 
have dire consequences for an 
economy whose problems the 
new President, Mr Hosni 
Mofrarak — to his credit — has 
not hesitated to publicise. 

At the same time Egypt is 
moving to encourage the 
exploitation of its gas resources 
by introducing a gas danse in 
its oil contracts. If this were 
p ropery executed, this departure 
could eventually help lessen the 
dependence on oil as the pri- 
mary source of energy. 

For the fact is that as. the 
accompanying tables show, with 
the population growing at over 
3 per cent a year, and local 
energy consumption at between 
12 and 15 per cent Egypt is 
going to have to change radi- 
cally the emphasis of its energy 


depend ance away from oil and 
gas to cope with demands pro- 
jected for the year 2000. 

For example, if the economy 
were to grow by the theoretical 
and somewhat fanciful rate of 
15 per cent a year by AD 2000 
280m tonnes of oil equivalent 
a year (5.6bn b/d) would be 
required. Even the 8-per. cent- 
used by government estimates, 
would need 68m tonnes of oil 
equivalent a year (2.4m b/d)-:- 
ahd unless oil finds almost on 
the scale of the Saudi Ghawar 
field were made this -too is- be- 
yond possibility. 

There are other limitations. 
The potential of solar energy 
is still at this stage not very 
extensive. Hydro power, even 
allowing for the development 
of the Qattara Depression pro- 
ject in the Western Desert being 
carried out — and it is under 
reconsideration again — can 
only be marginally enhanced. 
This Western Desert project 
would involve the spectacular 
filling of a betow-sea-level reser- 
voir with water from the 
Mediterranean to generate elec- 
tricity. 

Egypt has as a result to tip 
the balance towards nuclear 
power. Thus the hope is by the 
end of. tire century 40 per cent 
of Egypt's power will b& 
derived from that source and 
oil will be required to provide 
about a similar quantity, ie 

550,000 b/d, which is a credible 
figure given the expected life of 
Egypt’s fields. 

- Mr Htial takes comfort from 
the fact that since the begin- 
ning of 1980 there have been 
about 25 oil finds and three gas 
finds. In the past there has often 
been some confusion when 


these finds are announced as. 
to whether they represent .the 
delineation of existing - fields or 
genuine new discoveries. -But 
Amoco, which, with tiie Egyptian 
General Petroleum Corporation 
(EGPC) form GUPCO the 
major .producer in the Gcdf of 
Suez (which provides about 70 
per .cent of Egypt’s oil and has 
a success ratio of one m five, 
weds drilled) regards ; at least 
the majority of these announced 
flints as “ commercial.” 

In . fact -Egypt for tiie last few 
years .has been . discovering 
more oil than lit has been using 
and this is encouraging. Proven 
oil reserves are estimated cur- 
rently at 4^ bn barrels which 


Mobil . has - made another 
encouraging discovery in the 
Red Sea- • offshore from 
Horghada- -Off the north coast' 
of . Sinai, ENI has made a 
discovery of -oil in a new area. 
And in the Western Desert, 
Shell Winning -has made -a dis- 
covery which arouses long 
standing hopes, that Libya's. 
■ prolific, fields could in fact 
stretch across into Egypt 

But there is tittle doubt at 
present that Egypt’s oil policy 
is in some confusion. There are 
budgetary pressures because all 
Egypt’s other main hard cur- 
rency earners such as tourism, 
the Suez Canal and workers’ 
remittances have either 


The centrepiece of 
Egypt’s long term strategy 
is now nuclear power 


would last at 670.000 b/d 
production rates for nearly 18 
years unless more oil is found. 

More' interesting has been the 
fact that finds have been made 
outside the Gulf of Suez. There, 
one at Gemsa Bay dose to the 
Red Sea has encouragingly 
large reservoirs. Its production 
levels could be about 100,000 b/d 
in the next year or two. it is 
being developed, by a joint 
venture known as the Suez Oil 
Company (SUCO) composed of 
BP. Royal Dutch Shell, Deminex 
and EGPC. 

South east of SUCO’s find 


Slumped, or just held steady. 
The nressure is on the state- 
owned EGPCto come up with as 
much income as possible. 

The original $3bn target has 
been shaved down to -$2.5bn 
which is conceivably attainable. 
But some pessimists have been 
forecasting an exportable sur- 
plus of .nearly 160,000 b/d (of 
which Israel would . take one 
quarter). On the basis o£ a 
-year-round price of only $30 a 
barrel this might bring -in only 
$1.75bn. Indeed the average 
production level for February 
was well down. 'This was 


.caused by-Egypt not being able 
tosebT its oil and because its 
storage tanks were full: GUPCO 
on occasions was producing only 

150,000 b/d, against- -a sustain- 
able level of 525,000 b/d). 

At present ithe bulk of 
Egypt's associated gas is flared 

off, and non-associaied gas is 
produced from three main 
fields. The first is Abumadi in 
the Delta, tile second at Abu 
Kir offshore from (the Delta, and 
the Ihird at Abu Ghanadiq near 
the Qattara depression in the 
Western Desert Each of -them 
produce about 100m cu-fifr per 
day. 

Somewhat late in the day, 
EGPC has evolved a gas policy 
to be absorbed into petroleum 
contracts m the form of specific 
clauses to persuade foreign 
companies to regard gas as at 
least as potentially valuable an 
asset as oil for themselves and 
Egypt- 

At -present, although the 
three . main gas fields 
are providing energy far some 
power plants, fertiliser, cement 
and steelworks both in the 
Delta and in the Cairo area, 
and with some limited domestic 
use, far too many factories and 
power plants are being fuelled 
by OR. This is a direct drain 
on resources compounded by 
the fact that domestic energy 
sources are subsidised by the 
Government to the tune of 
about Ef3bn (£2 bn) a year. 

The gas clause which has been 
signed by several foreign com- 
panies stipulates in particular 
three features. The first is that 
a gas exporting project is only 
to be allowed after a National 


ELECTRICITY GENERATION 

1975 1980 1985 1990 


2000 


Capacity <MW) 

Generation (bn KWH) 

Per capita consumption ( KWH) 


3,780 

9.8 

205 


4500 

18J5 

450 


7,000 

32 

700 


10,000 22,000 

52 101 

1,000 yoo 


Gas Reserve of 12 trillion. 
( million million) cubic -feet has. 
been established. Until -that 
level Is reached the first claim 
to any gas goes to domestic use 
rather than exports. . 

Marcello Coliitti the - -vice- 1 
chairman of AGEP caused a con- 
siderable stir at ithe recent gas 
conference by suggesting that 
gas reserve? were already in the 
region of 9 trillion cubic feet 
rather than the 5.5 trillion cubic 
feet or so claimed by the Gov- 
ernment. A series of officials got 
up and attempted to refute his 
figures and maintained that the 
12 trillion ceiling is unlikely to 
be reached before the end of 
the decade. 

Bat the point is that Egypt is 
some distance away from 
exporting gas not just because 
of the National Gas Reserves 
but also because of the capital 
costs involved in developing 
export' facilities and finding 
markets abroad. To some extent 
a second element in the gas 
clauses will ease this by per- 
mitting companies to pool their 
gas reserves in order to supply 
the export project; A third- 
point is that the operator is 
entitled to appropriate compen- 
sation for any gas contributed 
to the National Gas Reserve and 
it is permitted to companies 
which have -relinquished con- 
cessions in which they did not 


originally develop gas bedadse' - - 
of lack of incentives specffjbaaUy.- 
to develop that gas. V 

At the same time, -Egyift"ig: ; 
undertaking the development oL- 
a gas distribution grid. stretch- 
ing from the Western D*4ert: 
where non-associated _ gat-. -is- 
being gathered, to the southern ! 
part of the Gulf of Suexl 

The centrepiece of Eton*'® j 
long term strategy is now j 
nuclear power. The non-prdflfer-.j 
ation treaty was ratified fertile ' 
People’s Assembly in.Febriucry j 
1981. This opened the wajfc$> a- ’ 
series of nuclear bilateral <»■ ( 
operation agreements with ^10 ; 
U.S^ France and West Gertwny, , 
from which Egypt intends: «t . 
first to buy six of Ste 'iaEht . 
power plants. These 
a total capacity of about, 9,600 ■ 
MW are to be located : alDng 
the Mediterranean and the Red 
Sea. 

It is hoped that they w5H-.l>e 
providing abbtrt 20 per ’ -caot - 
of Egypt’s energy requirements- 
by the end of the decade, and V 
double that by the end:Of :the | 
century. TherontractfWtfee de*' 
si gns of the first two reactors iii -~ 

expected to be awarded fey the ; 
end of’ this year, and a further " 
two by the end of next Dl ad- 
dition, Egypt has sighed nuclear 
technical training agreements -, 
with Canada and Britain; r. . ; 


um..er..um.. 



The first word in any language. 


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To the Holders of ■ - - - - - - - - 

HITACHI CREDIT CORPORATION 

TOWNV09W CbnvertibIeBonds3}ual©6 

3KKPCE OP JSBH IgSTtaBimror hv fmxnim ' 

AND. " . . 

ADJg&LriENT OF CONVERSTfry jPffKiiy ... k. 

,^5? Corwratum. hereby, that* asttre^ffi 

^5, 1 f Ee *? lsi ? bu ^ 0 ^ of s % rea of it® common Gtock o»lstAm& 
1982, to tiie shareholders of record, as of aunt MaxftfelflSStUSw® 
time at the rate of 0 J.0 .share for each share hold, the OmawadMt 

Dt*iAa at tna anAca_AovtriATinJ S . . « 


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HITACHI CREDIT CORTORAEIOir 

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Financial Times Wednesday March 17 19S2 


Reagan claims 
credit for 
oil price fall 

; . BY ANATOLE KALETSKY IN WASHINGTON 


AMERICAN NEWS 


Brasilia questions World Bank aid strategy 


isiOLUISi 


BY ANDREW WHITLEY, RECENTLY IN FORTALEZA. NORTH EAST BRAZIL 


> ;Cearal^s^s5 

8UZ!1--7J- 

J . PASaBA 

/psAuf ^KjHHaaunTjiBffi: 
■ J * .<ril«OASVr ; 

. CaL'JDC 


PRESIDENT REAGAN, in the 
r third fighting speech of his 
thistle- stop tour of conserva- 
tive southern states, yesterday 
.told Oklahoma legislators that 
jqafisnal security was more im- 
portant than the size of the 
budget deficit and claimed credit 
tori the world oil glut and fall 
; in oil prices. 

: He said that the economic 
-boom in oil-producing states 
like Oklahoma was the result 
-of free-market energy policies, 

• which resulted in higher oil pro- 
duction, greater conservation 
■and lower consumer prices. 

Oil price decontrol, instituted 
soon after the President’s elec- 
:tion. had “ unleashed the com- 

. -petitive powers of the market 
place” and had benefited pro- 
ducers and consumers alike, Mr 
Reagan said. 

There was no reference in 
. the speech to the decontrol of 
natural gas, which Mr Reagan 
also promised in his election 
campaign, but has postponed 
. until after this year’s eongres- 
sional elections at least. 

Referring to his battle with 
-Congress over the budget, Mr 
^ Reagan declared that “fcring- 
.-ing down the federal deficit 
V cannot take priority over the 
-.defence of the U.S." 

Alternative budget proposals 
■being discussed in Congress 
.'depend heavily on cuts in mili- 
-•tary spending plans to reduce 
-.■the deficit and some officials 
have indicated that a modest 
cutback in military spending 
might be inevitable. It has 
never been clear, however. 

• whether they have been speak- 
ing with the Presidents 
authority or not 

The President's reception in 


The Defence Department 
plans to start production of a 
stealth fighter-bomber this 
year although two of three 
prototypes crashed during 
flight tests. Renter reports 
from Washington, quoting the 
Army Times, an independent 
publication. President Reagan 
announced on October 2 that 
a stealth intercontinental 
bomber would be developed, | 
but there has been no pre- 
vious mention of a fighter- 
bomber. The Army Times 
said the new version would 
be built by Lockheed- In a 
separate report, the New York 
Times said Mr Richard 
DeVauer, Defence Under 
Secretary, bad told the Senate 
Armed Services Committee 
that the stealth would be 
ready to go into operation in 
1991. 

his tour of Alabama. Tennessee 
and Oklahoma this week has 
been less enthusiastic than the 
hero's welcome which he 
received in conservative parts 
of the country last year. In 
Oklahoma, there were demon-- 
stratlons outside the hotel ball- 
room where be attended a 
Republican fund-raising dinner 
on Monday. Guests paid $1,000 
a head to spend 40 minutes with 
the President. The function 
raised sufficient funds to wipe 
out the Oklahoma Republican 
Party’s debt of $100,000. _ 

State Democrats organised a 
protest reception for the poor 
and unemployed, at which 
guests paid 1,000 cents each for 
beer. 


BRAZIL' and the World Bank 
are heading for . a clash over 
how best to promote rural 
development, particularly in the 

poor North East and North West 
of the country. 

The differing views are under- 
stood to have been aired- last 
week in Brasilia during meet- 
ings Mr A. W. “Tom” Clausen, 
the World Bank president, held 
with government ministers. The 
eventual outcome will be of con- 
siderable importance for tens of 
millions of subsistence fanners, 
who are typical recipients of the 
type of non-industrial . aid in 
which the UN-linked World 
Bank specialises. 

Promoting agricultural and 
rural development in Brazil was 
at the top of the five priorities 
Mr Clausen laid down on behalf 
of the World Bank at a news 
conference here last Wednesday. 
Together with exports, agn cul- 
ture is also the Government's 
declared priority. . 

However, govepunent officials 


In Brasilia have now- come to 
the conclusion that they no 
longer favour the fashionable 
“integrated" approach to rural 
development, whereby a desig- 
nated region is simultaneously 
bombarded with agricultural 
technology, better seeds, roads, 
education, water and sewage 
supplies. 

“ As many as seven federal 
ministeries and agencies are 
often involved in the PDRI 
(rural integrated) projects in 
the North East." Sr Jos6 
Botafogo, a senior planning 
official, said recently. “ It 
doesn't work.” 

The World Bank. Dn the other 
hand, continues to defend what 
it feels has been a time-tested 
approach. “ Experience shows 
that it is useful to have- a single, 
cylindrical approach to develop- 
ment,” Mr Clausen said, fresh 
from a visit to one such pro- 
ject in the Ibiapaba region of 
Ceara state, in the North East 
of Brazil. 


" Tt's no use boosting crop 
output several-fold if these can- 
not be gol to the market place." 
he said. The newly appointed 
bank president— who hud not 
been expected to favour the 
great emphasis placed by his 
predecessor, Mr Robert 
McNamara, on aiding the poor 
—said the integrated projects in 
Brazil had made real progress. 

In the current fiscal year, to 
the end of June, the ^ World 
Bank has allocated 8175m in 
soft loans to agricultural 
projects in Brazil. Next year, 
this will jump by over 30 per 
cent, to $230in. 

According to Mr Clausen, the 
bank is currently aiding eight 
rural development projects in 
six north eastern states, with 
total lending to date of $250in. 
Usually the World Bank lends 
a third of the funds required, 
with the remainder being shared 
equally between the -st-ate and 
federal governments. 

The slicking point has often 


been the local state’s inability 
1o raise its share — a failing 
which, not surprisingly. ha* 
been one of the causes o£ 
Brasilia's dissaiisfanion with 
integrated projects. Slate 
governments, such as that in 
Ceara, continue, on the other 
hand, rtrungiy to favour this 
approach, which serves to 
improve the lot of their poor 

In Ceara, the World Bank Is 
currently involved in two 
PDRI's and is expanding the 
scope of its work. Sr Luiz 
Gunzago da Fonseca Mona, in 
charge of the Ceara project, 

<;aid that over ihe live years to 
3934 the World Bauk would he 
putting SlOL’m in programmes 
aimed at broadening the 
region's economic potential and 
adapting fanning to Ceara'* 
limited water supplies by 
encouraging new irrigation 
methods and developing new 
crop strains. The Federal 
Government will put up S56m 
and ihe slate a mere S4.5uu 


Ceara's dreams may have to 
be modified if Brasilia's 
changed views on Ihe virtues 
of integrated pruievl* become 
accepted pulley, as it i.^ likely 
tu be tile ca*-e. The Govern- 
ziiem'a attitude stems lrnnl 
several related c»in tillers nons 
which are unlikely m disappear 
in the near future: 

• Cost: “there are many 
projects Into which we are 
paying commitment fees uo the 
World Bank and '.he Inter- 
a me ii can Drvelupnienr Bank) 
for lands which we cannot draw 
because of the delays in gen mg 
everyone's consent " said a 
Planning Ministry oilicijl. 

• Funding: The problem of 
defining the counierpart fumi- 
lo be raised by the state and 
federal i'liVernmenis has nituni 
I ha i many rural projects 
ori'-inale with Ihe stale con- 
cerned only for the stale in 
plead poverty when they are 
finally approved. 

• Bureaucracy: The duplication 


AUU3MS -l-d 

: Sfaare 


BA til A 


1 SALVADOR - 
%==» u-* * 


\ HUMS L-T”*— I 

j KRAIS }fc=?= aitmm 

of authority louche* a sensitive 
nerve i;i a Br.ittitan tiouTninent 
whali Ua-iN. and needs, a 
M mister fur Dc bureaucrat isa- 
tion. in ;ue PDRI'* of the 
north-earl it is >' 01111(100 to find 
Jvpt esc ill alncs uf liVi- sectoral 
leim-ii !e-. pln> the Finance 
.Mini-iery and the regional 
tleveliipuirm .uiihuruy. 

• Nationalism: The close 
mviUveiijHiii uf torcign advisors 
on tit? ‘.'.rnimd tuer a period 
of several >ear> is regarded as 
iinliealiliv b\- some Brazilian 
ollk ials. 


Figueiredo appeals for popular support over heads of opposition 


BY OUR RIO DE JANEIRO CORRESPONDENT 


PRESIDENT Joao Figueiredo 
has launched an appeal for 
popular support over the 
heads of opposition politi- 
cians. He also called for a 
new campaign against porno- 
graphy 

Speaking on the occasion 
of his third anniversary in 
office — halfway throngh a 


six-year term — Gen 

Figueiredo expressed the 
hope that Brazilians would not 
deny -him support in his. 
“gigantic task” of returning 
the country to democracy. 

Later, in a nationwide 
address on radio and tele- 
vision, the President called 
for a “ moral crusade ” 


against permissiveness. The 
relaxation or Press, cinema 
and theatre censorship over 
the past two years had a con- 
siderable impact on all sec- 
tors of Brazilian society. 

Gen Figueiredo re-affirmed 
his intention to establish a 
“liberal democracy based on 
free enterprise ” by the end 


or his term. In early 19K5. 
lie also spoke in general 
terms uf the need for "social 
democracy,” jn which reforms 
aimed at improving the 
quality of life would be im- 
plemented. 

While Brazil lias un- 
doubtedly made considerable 
strides in all spheres siuce 


the military takeover in ISM, 
the standard of living uf these 
at the bottom end of society 
lias shown little improvement 
in real terms. I’tiriuploy- 
tueni in the big urban ci-iil^o 
has risen steadily since 19X0. 

During ceremonies in 
Brasilia an Monday to mark 
the anniversary, the former 


cavalry officer, who lias taken 
up dn- Government’s 
liberalisation programme with 
vigour, showed his sensitivity 
tu nppusiiiuii criticism. 

" I am persuaded that the 
people, mure ruliuiiat and less 
wary Hum my detract nr s. will 
extend the band to me that 
mv critics refuse." lie said. 


... V 'x‘ t ■ 


Recovery ‘endangered by 
r high interest rates’ 

BY DAVID LASCELLES IN NEW YORK 

:g3KBsfsas ssgpassass 

• the business cycle. 

“ "the- House of He made several proposals to 

S-5S S-Jss«as 

balance its hu^ec nau^ ^ the substitution of a 

* shattered, he- -said, {Set for total debt; greater 

•SSL/St ^SJ". debt 

Managua junta declares 
state of emergency 

• 3I ril ¥i lun ^ , .i2jS W «S<S8 S *ln ordinatoTof Nicaragua's ruling 

backing sabotage attac^ id ^ a nationwide 

. neighbouring Salvador ^ the state of 

declared a 3tkday stave ^ enjer gencv declaration, renew- 
; emergency. lat _ ab ie after 30 days, was bemg 

The junta lssued ,^ Ti d CT e ^fJ ini . made to save the revolution. He 
. on Monday suspending «Mtit£ speaking after two 

: tional rights and Jj^u-antgK “ orta ^ t we re blown 

' throughout the cwmjxTbe i P North of the country 
dampdown was procUnmed u W ^ 

* left-wing SuernUas » “ Earlier a Nicaraguan com- 

: Salvador attacked severeu . said counter-revoiu- 

targets m and around the ] U under orders 

- capital San Salvador before CentraI mtelMg- 

;. the security gence Agency were behind the 

forces urammxd ““xn ei 'Salvador, military offi- 
. of a huge ca<Je ams wwen ^ the lates t show of 

ST/rriUasJn El Salvador A to^SSTel^tioS 

' BJAB-ca. proof that the country was bmid- 

tha L»n n S°t^I Salvador guer- ing democracy and not meddhng 

; ssra ss^srsz uV 

^sS adorSp Govern- Agencies. 

Third World rejects U.S. 

seabed mining demands 

T BY DAVID TONGE 

^eve.^ coun^f- World 

- r ni^ cte S ™ ir^he oro- agreeing to the present draft of 
, over 230 <*»«»*■**>& SSTtatAded treaty. Sr de Solo 

posed Law of the Sea treaty, v „terday that the coo- 

ihe Untied Nitons ference would go ahead with- 

- Slowdown atjbe United VS . and a conventnon 

conference which resumeu ciEned in September. 

New York last wwk. S Didustriflti£d countries like 

Sr Alvaro de SoM._oh.mnan innusirm^ treaty 


i.'/w 

* ■ ' r * 5 



layior woooruw cumpicitu. 

on schedule a multi-million pound 
refurbishing and construction^ 
conttactatLondon’sGatwickAirport 
The work was part of the British 
Airports Authority’s programme of 
expansion and modernisation to 
^^|||^^quip Ga.twickfor the 




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How we left Gatwick 
on schedule and made happy 

landings at Subang.gggggS 

A that would see tiieairporfs passenger the mam terminal. j 




g»e. y defective. 


. ■ 

Aperiod that would see theatrpoifs passenger 
handlingcapadty increase to l6milIionper annum 
from 6 million in 1975- , _ ' . 

Thioughouttheperiod of construction the 
airport was hilly operational. Aseries of spedauy 
constructed tunndsup to 46 metres longand 12 
metres wide enabled the construction team to work 

- ‘.-I- ♦vOCCPf) tYl OVPtTl pn ts. 


Von Bulow found guilty 

■ ....U ... .,puI VABIf 


liljjo 

■ iW ’* 


X" 

.-‘"KV 
. • .'IS 


.. ' .‘.l-S, 


BY PAUL BETTS IN NEW YORK 

CLAUS VONBimSjW into a 

^ on the night of December 
found gntijy by a her Newport estate. 

Newport, Rhode MmA ^ eil ^ a comatose 

day -ef ^twiM ■*»£"* {J 2L e fcr Vince. She suffered a 
mur_d«r his_wrfe, the heiress to state ever srnce^ “ ^ 


memam terminal. 

Back inEngland we are currently manage- 
mentcontradDisfortheimportmtnevt^Terminal 

FouratHeathrow ■ . , , , 

Otiier recentprojects have included a return 
to Gatwick and important new extensions at 

ManchesterairporL 

xn^l , ^ ^ i.u a j"» 4- f hia +MWia/vf- noirrvnilniwo 




sia-.u*j 9 vi vy,.» • 

- ’ the jury announced ints verdict 

to a packed- court. . . 

n tiinrtpn 


Mr Von Bulow, who showed 
no emotion when the verdict 


■ 


««. wa S =d.w.; freed an toll 


Aiong-naurnigntuuiiivjAcvvAvav«u.i^ 

International Airport atSubang, KualaLmiipm; 

To cope wiot ever increasing aircraft and 
passenger movements here ? Taylor Woodrow will 
complete a modernisation programme rn three ? 
stages Work on^ the origii^tenninal builegigand 
completion ofasecondwilloveriap during thefirst 

. « TavlorWoftdfiywConstrnctio 


EXPERIENCE EXPERTISE ANDTEANWORK, WORLDWIDE 

TAYLOR WOODROW 


compienonoiaseajnuwmuvtL^^^^^^^u.^ 




■ Ma -i-n." , jf: 




6 


Financial Times Wednesday M.stf$h.l7 1982 


WORLD TRADE NEWS 




> . 


Pressure is building up for Japan to liberalise farm imports, Richard Hanson writes 

Tokyo reluctant to bite the bullet 


y-, 

a'. 


THE LIBERALISATION of 
Japan’s restrictive agricultural 
imports policy is now emerging 
as a major bone of contention 
in the country's continuing 
trade dispute with the U.S. 

The issue figured prominently 
in talks in Washington between 
U.S. officials and Mr' Masumi 
Esaki, the former Japanese 
International Trade and lib 
dofitry Minister, who was head- 
ing a mission of Liberal Demo- 
cratic Party Deputies, and who 
is in Europe lliis week explain- 
ing bis country's trade policies 
to EEC countries. 

The agricultural matter also 
was a key agenda item at talks 
in Tokyo last week between. Mr 
David MacDonald, the deputy 
U.S. trade representative, and 
senior Japanese Foreign Mini- 
stry officials, and is expected to 
figure in further U.S.-Japanese 
trade talks in Washington this 
week. 

The American pressures have 
induced Japan to bring forward 
by six months talks on beef and 
citrus import quotas (which 
expire in 1983) and to agree to 
the establishment of a working 
group to discuss other items 
from next mouth onwards. 

These concessions, however, 
do not mean that peace is about 
to break out between Japan and 
the U.S. on the agriculture 
front 

The two countries remain 
fundamentally opposed with the 
U.S. demanding that Japan buy 


U.S. products because they are 
cheaper and Japan claiming the 
right to protect and preserve 
an agriculture system that has 
been coming progressively' to 
pieces since the early 1950s. 

What went wrong with- Japa- 
nese agriculture from the 1950s 
onwards was that it became part 
of the collossal price the coun- 
try paid for industrialisation. 

The explosion of factory out- 
put in the cities — and the bilge 
, increase in demand for indus- 
trial workers — drew' tens of 
millions of workers off the land 
and reduced the farm and fish- 
ing labour force from 36 per 
cent to 10 per .cent of Japan’s 
employed population in the 
space of two decades: ■ 

Political power, however, re- 
mained in the rural constituen- 
cies which provide- lhe _power 
base of the ruling liberal 
Democratic Party. 

In the 1950s, on the strictest 
criteria for calculating food- self- 
sufficiency, Japan had been pro- 
ducing more than 80 per cent of 
its food from its own farms. By 
1970 the ratio had ^dropped to 
50 per cent, and by 1976 it fell 
to what appears to have been an 
all-time low of 42 per cent. 

The high level of Japan's food 
imports has made this the 
second largest item (after 
energy) in Japan’s import bill. 
It has also turned Japan Into 
the largest purchaser of Ameri- 
can farm products. About $6bn 
worth of U.S. agricultural pro- 


duce, or roughly 15 per cent of 
total U.S. food exports, went to 
Japan in 1981. - -' 

The fact that Japan baysa lot 
of food from America, however, 
tends to be overlooked In the 
frustration . Americans feel at 
the fact it does not buy far 
more. This is what Japan 


the national treasury from pay- 
ing its way. 

The- irony of the system Is 
- that the subsidies were paid for 
a crop which "fewer and fewer 
Japanese ‘people want to eat. 
Rice consumption on a •per 
capita basis has fallen steadily 
since 1962 although bread has 


MR YOSHIO Saku ranch!, 
Japanese Foreign Minister, 
arrives, in the U.S-.this week 
to discuss biiaterai relations 
and try to ease trade friction 
between the two countries. 
Japanese Government officials 
Said the visit to Washington 
on March 20 is an attempt 
Mo forge a new political 
climate.” 


Meanwhile, Canada and 
Japan opened four days of 
trade talks in. Tokyo yester- 
day with Canada calling for 
restraints on -Japan’s auto 
exports “no less favourable 
than what the Americans are 
discussing,” a Canadian 
official said. 

Agencies . 


should, and would, be doing, 
the U.S. argues, if what is left 
of Japanese .domestic agricul- 
ture- were not protected by an 
illogical and costly subsidy 
system. 

.An example of waste and 
muddle in Japanese agriculture 
is the rice subsidy scheme. 

- Subsidising the domestic rice 
crop (by paying the farmers a 
price that was between three 
and five times the world market 
price) cost the Government 
Y652bn (£1.5bn) in Us 1981 
budget- and was- second only to 
the spectacular deficit of Japan 
National Railways in preventing 


still a long way to go to catch 
up. 

The combination of excess 
.production resulting* from the 
Government’s subsidy scheme 
and declining consumption 
explains why Japan is stuck 
■ today with a costly 4m tons rice 
stockpile •( equivalent to nearly 
half annuaT production of 
around 10m tonnes). 

One of the ironies of the rice 
surplus problem is that the 
Government does not only 
spend heavily on supporting the 
crop. Last year it also paid out 
Y342bn (£78Sm)_to persuade 
fanners to grow something else. 

The- “something else” in 


many instances, included pro- 
ducts which Japan could ha^e 
imported at lower prices from 
the U.S. or which, while not 
necessarily available abroad, 
were considered vulnerable to 
competition from alternative 
items. 

The classic case of diversifica- 
tion out of rice leading to in- 
creased protectionism against 
American farm products is the 
celebrated (or notorious) Mikan 
— a small Japanese tangerine 
which has been - seen by the 
Ministry of Agriculture as being 
vulnerable to competition from 
such fruits as bananas, grape- 
. fruit and oranges. Imports of 
the first two items were liberal- 
ised in the 1970s but oranges 
remain one of the most critical 
issues In the current round of 
U.S.-Japan trade frictions; 

Beef is another product 
which, as a result of a costly 
price support system maintained 
by the Ministry of Agriculture, 
has become a major -bone of 
contention with the ELS. 

"What the Ministry does not, 
apparently, want to do is reduce 
the prices of high cost foods, 
increase imports, or lower the 
burden of support prices. 

The Ministry’s strongest argu- 
ment against making any signi- 
ficant concession to U.S. 
demands is that nothing can 
change without risking a melt- 
down of the entire bail of wax 
that Japan’s agricultural system 
has become. 


Malaysia 
seeks 
Dutch aid 
on tariffs 

KUALA LUMPUR — The 
Malaysian Government yester- 
day formally requested- Dated* 
help in persuading' the Euro- 
pean Economic Community to 
! remove tariffs on its exports of 
erode and refined palm oil. 

The request was conveyed by 
Mr Paul Leons Kbee Seong. 
-the Primary Industries Minister, 
in a meeting with Mr "W. Bik, 
the Dutch Economics Minister, 
who - is accompanying Prime 
Minister Andries van.Agt on a 
three-day visit to Malaysia. 

In view of the fact that.palm 
oil' from Africa, soya bean oil 
from the U.S. and fish oil from 
Peru are imported duty free 
into the EEC, Mr Seong said, 
be thought' preference ' also 
should be given to Malaysian 
crude and refined palm oiL 
He also urged the Netherlands 
to forestall any moves by the 
10-nation Community to raise 
the present 4 and 12 per cent 
duties on cnide palm oil and 
refined palm oil, respectively. 

Last year, Malaysian output 
of .palm oil was 2.86m tonnes, 
but this is expected to increase 
to 4m tonnes in 1985 
Wong Snlong adds. Mr van 
Agt, told a news conference 
that in talks with Dr Mahathir, 
the Malaysian Prime Minister, 
he expressed reservations over 
Malaysia’s initiative to form a 
tin producers’ association. 
Agencies 


Esaki pledges' 
better EEC 

trade relations 



BY GILES MERRITT IN BRUSSELS 


THE LEADER of a high-ranking 
mission of Japanese politicians 
and officials emphasised yester- 
day that Japan is increasingly 
aware of the international poli- 
tical tensions resulting from Its 
Industrial export success, and 
.warned against the. -possibility 
of- protectionist pressures re- 
creating -the. conditions of the 
1930s. 

Mr Masumi Esaki, leader of 
the Special Committee for Inter- 
national Economic - Measures 
delegation made-up of members 
of'Japan's ruling Liberal Demo- 
cratic Party, made it clear fol- 
lowing talks with senior" Euro- 
pean Commission officials that 
Japan,- therefore, plans to 
accelerate its technical and com- 
mercial co-operation efforts with 
the EEC. . 

But at the same time, Herr 
Wilhelm Haferkamp, the EEC 
External Affairs Commissioner, 
made it plain from the Commis- 
sion's side that, failing a signi- 
ficant improvement in the EECs 
trade imbalance with Japan, it 
may no longer be possible to 
avert protectionist action being 
taken by "individual member 
states. 


Herr ITaferkarap said such 
curbs would doubtless be fn 
violation of EEC rulrtand'a 
breach of Community law, sod 
would, therefore, result in Jm. 
offending member state- bemg 
taken hy Brussels before 
European Court of Justice ;jn 
Luxembourg. But tho damage 
would nevertheless haw been' 
done, he warned. • - v" 

The purpose of the Japanese 
mission, which has come to 
Brussels from Washington, is to 
underline tho importance of . the' 
97 measures adopted earlier ttfc 
year to open the Japanese mar. 
ket tn imports. Mr Esaki hUH- 
cated that liberalisations bn;* 
further nine products can ^be. 
-expected 7 by the rnd of : this 
month, and stressed that Eupw. 
pean exporters facing. ledmlm- 
dlfflcullies should not hesitate 
to contact Japan’s new Offlcfcpf 
Trade Ombudsman (OTO), \ 
The Japanese delegation is, 
nevertheless, understood' :aa_ 
have told' European Commission 
officials that further subsUodM 
measures that would help 
redress the Japanese trade stir- 
plus with the EEC last ■ year tf 
some $15bn cannot be expected. 


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UK Industry exports 
on declining trend 

By PAUL •CHBESEfUGHT, WORLD TRADE EDITOR 7 ’ 


THE TONNAGE of UK exports 
from key industrial - sectors 
declined appreciably through 
1979 to 1981. according to 
statistics compiled by Freight 
Information Services.* 

The decline an industrial 
exports contrasts with, in some 
cases, -the dramatic rise of raw 
material and petroleum exports. 
The trends nave been masked 
by the Mgh current account 
surplus, recently estimated at 
£6bn for 1981. 

At the same time, die figures 
provide a sobering backdrop to 
recent official statements draw- 
ing attention to the surge in 
capital goods -contracts which 
comprise less than ID per cent 
of Hie total UK export mix. 

The use of tonnage to -mea- 
sure export: performance strips 
out the inflationary factor pre-~; 
sent in considering them . by 


Cereals 

Crude fertilisers and minerals 
Metal ores and scrap . 

Petroleum 

Other fuels . . . 

Metal manufactures 
Other manufactured .materials 
Elec, machinery, appliances and 
equipment 

Other machinery and equipment 
Road vehicles 
Scientific instruments and 
equipment 

Photographic, optical, watches and 
docks 
Estimated. 


Value only. But the yearhy-jear 
figures uHsguise the . recovery 
which .seemed to be taking 
-place in the last quarter of 
1981 . 

For all that, the market expec- 
tations for the engineering 
‘ industry, as an example, are 
patchy. While the oil producing 
economies have been importing 
at a high level, countries in the 
Organisation for Economic Co- 
operation and Development 
remain gripped by recession. . 

The. Freight Information Ser- 
vices figures suggest that gains 
in export tonnage have been 
achieved mainly for bulk com- 
. modifies where demand can 
react quickly in, the face of 
transitory factors -lika currency 
fluctuations. . _• • - - 

- •- Export /Import Tonnages 

1981; Freight biformation- Ser- 
vices, Southport; £35. 

~ Exports • 

. Tonnes 

: \m 

1<«1521 
11 , 459,302 
1 * 554,074 
525 * 1.054 
4,136,789 
876,789 


1980 
3,140573 
11,411,285 
3,055312 
53,718,215 
6351.016 
814,424 


. 1981* 

5,743359 
7322.738 
33VPI1 
653ZU49 
15,413,015 
763329 


2,781,756 

2030,688 

1529545 

386.147 

1,935,957 

1,509,098 

416,926 

1,991,557 

1359523 

374599 

1550,156 

U11534 

41,363 

43,819 

44^914 

51,562 

52504 ' 

50591 


Orissa steel 
plant site 
switched 

By K. K. Sharma In N«vr .D«IM ' 

A LARGE Orissa. State, steel 
plant, the contract ior which 
has be«n awarded to a consor- 
tium. led by Davy McKee .of 
Britain, will not be set up at 
Para dip, the coastal site 
originally selected.. Instead, it 
will be located in Daitari region 
of Orissa, about 75 miles inland 
from the east coast city. 

The change in- the site = was 
announced • yesterday by - Dc 
Charanjit Chanana, Minister for 
Steel and Mines, on logistical 
grounds. He said the new site 
would .lead to. substantial 
savings in infrastructural costs, 
economies in the cost of site 
.preparation and recurring-costs 
over the life of the plant 
The change is thought to 
have beep made because the-, 
original site was found unsuit- 
able for the plant after it was 
surveyed. • The original . plan 
was to locate it on a coastal site 
so that savings could be made 
in regard to imported coking 
coal and with a view to possible 
exports of steel from the plant 
- The consortium has also 
arranged a financial'package for 
the plant With the help of 
British and French Govern- 
ment grants and - credits and 
Eurocurrency Joans-, . 

Although awarded some 
months ago, the contract- has 
still not been signed 


Lisbon plans 7 : 
more flexible 
trade institute 

By Diana Smith in LHbon-^i 

:?*$■ 

THE Portuguese Go ve rnment 
Is proposing to set iip -a’Artr 
foreign trade '. inriltutS^'t* 
replace Its Export Promotion 
Fund. 

The Balsemao Administra- 
tion maintains that tl» new 
institute will .- be- : fioBRd*B? 
independent and Toort fleiwe 
" and operational than 1 ~ 

decessor. 

Portugal’s 1981 
tore was bleak; with exports 
covering less than 50 per «ent 
of imports and a trade deficit 
of at least 54.5bn f£25b£ r 
Exports were hurt notably 
- by the. slump ■ in ■ Europe, 
where -nearly three-quartere 
of Portugal's 7 expost^iare . 
placed, but also., by k . 

able timidity Is - exploring 
African, Arab autf AWanr 
markets where - “hardbcir* 
nations sueh as ‘Brioil -are 
making strong progress. _ _ : r . 

Whether the government 
can resist the old Portuguese, 
temptation to ovophnreacra* : 
.Use the new Foreign Trade 
Institute or, constantly alter 
its direction on a hU-or-miss 
basis, rather than, in response 
to market movements,: will be 
an interesting test of -the 
Balsemao Government's 
promise to cut back on red 
tape. - 


S. African trucks for UK 


BY WHWARD SIMON IN JOHANNESBURG 

FORD South Africa Is to supply- 
10,000 ohe-ton trucks and a 
range, of spares to its British 
counterpart over the next year. 

The contract, valued ar RBOm 
(£32ra) is the largest export 
order received— by- a South 
African motor manufacturer. 

A Ford official said it is 
unlikely that- aH- the vehicles 
will be absorbed by the UK _ _ _ _ 

marker during the period of the the UKurtfer represents - 

contract, shipments in su bse-r" doubUhir dT“1k production**’ - 
quant years are, .thus, likely to * • 


. be considerably lower. The first 
deliveries will be-- made in 'Mo?; 
1982. 

The trucks win have*. 75 P^. 
rout local content by weteW* 
but almost half of their value 
will ennsist of imported edmp 0, 
nents. - ' • .. 

Foril South' 'Africa: assembles 
about 13,000 -oBfrton- trucks a 
year for the local market,' and 




this model.' 






l 







J — : — ^ fa a w^ifLJ S a i BB Thu rsday March . IS. . 1982, .... 


Financial Times Wednesday March 17 -i&bi 

APPOINTMENTS 


UK NEWS 


APPOINTMENTS 


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Changes at Croda 


Mr P. -J. F. Ross, a director of 
CRODA INTERNATIONAL and 
president of the Croda Inks 
Federation, is retiring at the end 
of April, Croda Polymers Inter- 
national has made a number of 
appointments from April L 
Mr G. R. Hembrough, deputy 
chairman and managing director 
of Croda Polymers Internationa], 
will in addition for the time 
being act as. president . of the 
Croda Inks Federation which 
embraces Croda’s printing ink 
activities throughout the world. 
.Mr G. H. Hutchinson, currently 
r Tedm|Ml director of Croda Inks, 

will become deputy president of 

the Croda Inks Federation, Dr 

M. R. . Harrison, currently 

development executive Croda 
Inks , wiiil take on executive 
responsibility for all Croda Inks 
UR technical administration as 
divisional technical manager. 
Two further appointments within 
Croda Polymers International 
are: Mr B. A. 1. Jewtss, accoun- 
tant at Croda Resins, been 
appointed financial director, and 
Mr P. Qidman. who came from 
the International Paint Company 
to Croda Resins on January 1 as 
operations manager, has been 
appointed operations director. 

Mr Philip Nurse has been 
appointed to the new post of 
chief pfenning and projects 
manager withi n NATIONAL 
WESTMINSTER BANK'S inter- 
national banking division based 
In the City. He was senior 
advances manager, international 
division, where he is succeeded 
by Mr Eric Collins, formerly 
manager of NatWest* s Watford 
Queens Hoard Corner branch. 

* 

Mr Godfrey M. Crook has been 
appointed general manager 
property UK and overseas of 
BRITISH AIRWAYS. 

•* 

Mr John Oxford commercial 
dir ector of SIMON CONTAINER 
MACHINERY • has been 
appointed director and general 
manager of the Simon-VK 
division. 

★ 

Following acquisition of the 
National Freight Company from' 
the Government, the NATIONAL 
FREIGHT CONSORTIUM has 
appointed its board: chairman: 
Sir Robert ■ Lawrence; deputy 
chairman and chief executive: 
Mr P. A. Thompson; deputy chair- 
man: Mr V. CL Paige; director of 
finance: Mr. J. K. Watson; and 
director of legal : services: Mr 
P. A. Mayo. Mr F. S. Law, Mr 
P. G. Scott, Mr J. E. B. Sieve, Mr 
P. H. SpriddeU end Sir Ronald 
Swayne serve as nan-executive 
directors on the National Freight 
Company bond, and will serve 
in a similar capacity with the 
Consortium. Mr R. It Watson 
has joined the board as a non- 
executive director he Is deputy 
managing director of Barclays 
Merchant Bonk.' 

Executive directors of- the- - 
Consortium (not hoWtmg specific, 
board offices) are: Mr B. R.- 
Hayward (group managing direc- 
tor, National Carriers Group); 
Mr J. D. Mather (group manag- 
ing director, special traffics 
group): Mr G. F. PygaH (group 
managing ‘ director, Pickfords 
group): and Mr D. H. White 
(group managing director, 
British Road Services Group). 

• * 

BUCK AND HICKMAN has 
appointed Mr Stuart H. Davies, 
formerly managing director of 
Stanley Toots as a non-executive 
director from March 22. 

* 

Mr John Cunning ham is to 
become head of COUTTS AND 
CO.’s international bonking divi- 
sion in July on the retirement of 
Mr Geoffrey Penyr Mr -Tony 
Davies is to succeed Mr Gaining- 
bam as bead ' of management 
services division in May and wiH 
also become a principal officer of 


the bank at that =time. Mr Ronald 
Wmford. secretary of the bank, 
has been appointed a principal 
officer. 

* 

Mr Keith Hacked: has been 
appointed sales director of P. C. 
HENDERSON, garage doom. , 
subsidiary of P. C. Henderson 
Group. 

. Hr Keith Rowland has been 
appointed project director of 
CRODA SYNTHETIC .CHEMI- 
CALS to be based at the Four 
Ashes site near Wtfvexhanptira. 

* 

HABITAT MOTHERCARE has 
made the following grasp 
appointments: Hr John & 
Stephenson has been made design 
director of Habitat Mothercare; 
Mr Terrace P. Goddard, becomes 
company secretary; Mr Terence 
A S. Butler, financial controller, 
and lbs Rosemary Thorne, chief 

accountant. Mr Kenneth Gaskell 
has been appointed financial 
director of Mothezeare. Mr 
Barney Goodman has been 
appointed deputy chairman of 
The Conran Stores Inc., and Ms 
Pauline Dora as .vice president, 
buying. 

* 

Arising from the reorganisation 
Of BICC GENERAL CABLES 
into two market-based groups, 
electronic cables and energy 
cables, the following appoint- 
ments have been made. Mr J. A. 
Tansey and Mr T. C. Glucklltv 
become directors of BICC 
General Cables, with the former 
responsible for all electronic 
cables and the latter for energy 
cables. 

★ 

Son Exploration and Produc- 
tion Company and NORTH SEA V 
SITO OIL COMPANY- has 
appointed Sir Jack Hampton as 
special adviser. He was Per- 
manent Secretary at Department 
of Energy. 

■ * 

Mr Gordon Watson. UK mar- 
ket director for BAT (UK and 
■ Export) will leave the company 
in July to become chairman of 
BAT CO. (HONG KONG). He 
has headed BA Ts UK market 
entry project since its inception 
"in 1975. Mr David Thorpe, 
presently chairman of BAT 
(Hong Kong) will take over as 
UK market director in July. 
Following the retirement of Hr 
Leslie Craigan as export director 
of BAT (UK and Export) in 
November Mr Thorpe will 
assume board responsibilties for 
export markets and the com- 
pany's interantional brand 
m anagem ent as marketing direc- 
tor. • 

■ ■ • ★ . 

= Hr Paul-C. Button, Hr D. Noel 
Healy and Hr Peter V. Reed 
have been -appointed assistant 
directors of mercha nt ban kers, 
CHARTERHOUSE JAPHET. 

: On ■ his appointment as. a 
director of M A: G- GROUP. Mr 
Alan- Mctlntock has resigned 
from the board of M & G Invest- 
ment Management, where is is 
succeeded by Mr Even Macpher* 
son. ^ 

Mr W.‘ BL 5 Ritchie has been 
elected 'president of the ASSO- 
CIATION OF BRITISH MINING 
EQUIPMENT COMPANIES 
(ABMEC). Mr Ritchie is man- 
aging director of John Davis and 
Son (Derby), chairman of Davis 
Derjby Overseas Holdings, and a 
member Df the DouWon Engineer 
ing Group board. Mr A. Murdoch 
Spence, managing director of tfoe 
Wi aster Group, has become vice- 
-president (home), having pre- 
vously served as chairman of 
the Face Equipment Groig». Mr 
T. Fenton; managing director of 
Buwood, is the elected deputy 
president : whilst retaining his 
existing office of vice-president 
(international). 


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Anti-fraud 
telephones 
go on sale 

By Alan Crane 

BRITISH TELECOM win mar- 
ket special telephones for 
retailers designed to combat 
credit card crime. It has 
agreed to boy a su b sta n tial 
cumber of “transaction tele- 
phones” developed by BaeaK 
Transcom, part of the Bacal 
electronics group. 

The first customer for the 
new telephones will be 
American Express. From 
June this year British Tele- 
com will install the Raeal tele- 
phones on behalf of American 
Express Dt z number erf 
London stores. 

Credit card theft and fraud 
are ""^ " g serious concern to 
all the major card issuing 
organisations. Access and 
Barclayeard alone lost more 
than JET in last year. 

The telephone is fitted with 
a device to read (he magnetic 
strip on all common credit 
cariin. When the card is 
used to make a purchase, the 
telephone automatically dials 
the card issuer’s computer 
centre to check that the card 
is valid, and that the cus- 
tomer's credit celling has not 
been exceeded. 

Transaction telephones are 
becoming common in the 
U.& Raeal is only the first 
of a number of manufac- 
turers and suppliers, mostly 
American, seeking British 
Telecom evaluation. 

Details, Technology, Page 
13. 


Domestic rate bills to rise 15% 


BY B08M PAULEY 

AVERAGE domestic rate bill* 
in England will increase by 
about 15 per cent next month. 
The rise for non-domestic rate- 
payers is expected to average 
about 13 per cent 

Predictions based on returns 
by more than half of England's 
councils to the Chartered Jrtsti- 
tue of Public Finance and 
Accountancy show that the 
average domestic rate hill next 
month is likely to be £281 com- 
pared with £245 in 1881-82. The 
average domestic rate is 
expected to rise from 123p in 
the pound to just over I41p. 

Increases are lower in Lon- 
don this year, reversing the 
trend of the last two years, 
because the capital has been 
given a large increase in this 
year's Government grant Also, 
the London boroughs face 
i elections in May, which 


AVERAGE RATE RISES IN ENGLAND 1982-83 


Class of authority 

Average domestic 
%• • £ 

rate bill 
4 

auv ■ 

£ 

Non-domcstic 

% 

In nor London 

144 

54 

397 

451 

115 

Outer London 

114 

<Z 

. 325 

347 

113 

Metropolitan 

areas 

154 

35 

224 

241 

134 

Shire areas 

153 

35 

114 

249 

134 

Average all Englhh 
audio rites . 

153 

34 

MS 

281 

130 


traditionally results in money 
which has been pot into 
balances in -previous years re- 
appearing to subsidise the rate 
in election -year. 

In- addition, housing subsidy 
payments, which are notoriously 
unpredictable, have generally 
been higher than expected in 


London in 1881-82. providing a 
surplus for 1982-83. 

So many Inner and outer 
London boroughs are cutting the 
local part of the rate bill in 
real terras. However, rate- 
payers still face larger bills 
because of hefty increases by 
the Greater London Council and 


Diner London Education 
Authority. 

Although the 15 per cent 
increase is down on the 1981-82 
average of just under 20 per 
cent, it is still ahead of infla- 
tion (currently running at a 
year on year rate of 12 per cent) 
and higher than predicted by 
the Government. 

The Financial Statement and 
Budget Report (Red Book) 
issued with the Budget last 
week lists taxes on expenditure, 
which means rates for councils, 
at £10fibn in 1981-82 and 
£12.2bn in 1982-83. implying a 
rise of 11.9 per cent. 

After allowing a 1,5 per cent 
drift for changing rateable 
values the official estimate of 
rate rises is about 10.5 per cent, 
an underestimate by more than 
40 per cent compared with 
ClPFA’s returns. 


‘Little sign of recovery* for E. Midland engineering 


BY ARTHUR SMITH, MIDLANDS CORRESPONDENT 


ENGINEERING companies In 
the East Midlands shed 14,000 
jobs last year — and there was 
little sign of recovery in the 
next 12 months, Mr Daryl 
Griffiths, president of the 
East Midlands Engineering 
Employers' Association, warned 
at the association’s annual 
meeting. 

Official statistics: showed a, 

slight recovery in engineering 


output in 1981, but the improve- 
ment was slight compared with 
the decline of the previous year. 

Many companies would have 
to cope with the familiar 
problems of shortage of orders, 
pressures on profit margins, and 
severe competition in export 
markets, he told association 
members meeting at Oakham, 
Leicestershire. 

The fact that total engineer- 


ing output last year was only 
86 per cent of that of 1975 
was “ a sobering thought." 

Engineering was the region’s 
largest wealth-creating industry, 
but numbers employed had 
fallen more than ll per cent 
last year to 135,000. Redun- 
dancies and short-time working 
were another feature of the 
year. 

The year had been “ relatively 


satisfactory ** for industrial 
relations. Strikes were at a low 
level, but other forms of 
industrial action had shown an 
increase. 

Mr Griffiths urged the Govern- 
.ment to come to grips with 
the problems of the nationalised 
industries. Charges from the 
public sector had been the 
greatest cause of rising costs 
for engineering companies. 


Alphasteel 
loses output 
quota case 

By Giln Merritt in Brunet* 

Alphasteel, (he Independent 
UK steelmaker, ha> failed in 
j[c legal challenge against the 
steel production quotas Im- 
posed on it by the European 
Commission. 

The finding of the Euro- 
pean Court of Justice against 
Alphasteel largely removes 
the legal doubts that had 
threatened lo weaken the 
Brussels Commission’s autho- 
rity In running an anti^rislfi 
steel production and prices 
regime. This aims to restore 
discipline to the bard-hit EEC 
steel industry. 

The Luxembourg court's 
decision was that Alphasteel 
hart failed to prose that the 
European Commission abused 

its discretionary powers when 
fixing the UK steelmaker's 
output quotas for the first two 
quarters of last year. 

In addition to upholding 
the methods used by the Com- 
mission in assessing and fix- 
ing production levels, the 
Court also answered Alpha- 
steel’s appeals against the 
Commission. 

Alphasteel*!; said Brussels 
should have set lower produc- 
tion quotas for steelmakers 
receiving state subsidies hut 
the Court ruled (hat such dis- 
tortions of competition were 
nol covered by the regula- 
tions on which (be steel 
regime was based. 








mm 






ft r/k aniriVrf I 






S3SI 




Atloriaicmgeoftyieswhich 
ieccjgnises that 2*2 tons of Rolls comers 
differently from 1*2 tons of Porsche. 















mm 




iiiiyi 















Oaramgjelitcasseemtot^^ " "■ 
iliatmetypecflyre^orevenliiiB^are : 
eiion^i to satisfy the needs of aQ fast cars. 

Notus. 

Our new Dunlop D-iange offers no 
less than five different performance tyres. 

Each one designed withemphasis , 
on specific perfonnance aspects. 

The D4s for example are made 
exclusively for those machines that are . 
built to take comers at 120 mph. like the 
Porsche 928 and the BMW ML. 

They re twice as wide as they are 
deep. 

And theyT keep moreof their 
computer designed tread on the road in a 
tight comer than any other tyre made. : 

If however, you re more concerned 
with not upsetting the cocktail cabinet 
than imitating Emerson Fittipaldi, then 


aarD7s2tefo 

They reach such he^^moomfe^ ' 

quietness and performance on luxury onBMWsand^ ‘ “ * ; 

saloons that Rolls Rpyce already fit them Mercedes. While the D2 matches 

as standard on their new models. the crisp handling requirements of 

The difference between the two is ‘ executive saloons like the Rover 2600 

the D3. and Peugeot 505. 

They’re made for the latest All in all, you’ll find there’s a tyre in 

generation of fast sports saloons like the the new Dunlop D-range that’s better 

Audi 80 and the new Ford Escort XR3. designed for your car than your present 

They give a smoothness of ride ones. Simply because it was specifically 

never before obtainable on extra wide designed for your can 

tyres. And not for someone else’s. 

Their steel breakers have anylan TtfcS HSWT 

wrap which shrinks at running temp- * » >»> M mTmm 

erature minimising tread movement UX J3dlOX illCLuCS IJI9S, 

and maxuuising cornering capability. . WttAry M m 

The D6 is just as sikiily impressive 



UK NEWS 


Financial Times Wednesday Marclv 17 T9S2 


Tax change hits Barclays loans 


ST TIM DICKSON 

A MAJOR tax loophole closed 
in last week’s Budget has tem- 
porarily forced Barclays Bank 
to withdraw a special lending 
scheme for smaller businesses. 

Unless discussions between 
Barclays and the Government 
produce a solution, the Chan- 
cellor’s decision to crack down 
on 41 Section 233 loans " will 
mean higher borrowing charges 
for customers with a Barclays 
Business Start Loan. 

So far more than 400 com- 
panies have taken up about 
1:13.5m under the scheme. 

In a Budget that once again 
provided considerable encour- 
agement for small businesses, 
some people feel that the full 
impact of this anti-avoidance 
measure may have been over- 
looked. 

Under Section 233 of the 
Income and Corporation Taxes 


Act 1970, corporate borrowers 
have in certain cases paid 
interest -to their banks at a rate 
which fluctuates with perform- 
ance, so turning the payment 
for tax purposes . into a 
dividend. 

Although the borrowing com- 
pany has had to pay ACT, 
Advance Corporation Tax. at 30 
per cent, the “dividends” in 
the hands of the batik were 
regarded as franked investment 
income and could therefore be 
offset against its profits taxed 
at 52 per cent 

In future, the Chancellor said 
last week this sort of payment 
will be treated by the Revenue 
as normal interest. 

Section 233 has been an 
important feature of Barclays’ 
Business Start Loan scheme, 
introduced in September 1080. 

The scheme, under which 


companies can borrow np to 
£100,000 for up to five years, 
is intended to provide start-up 
finance to new limited com- 
panies, or finance for estab- 
lished companies planning a 
new project or product 

Rather than chaining interest 
like the more traditional forms 
of bank finance, charges on 
Business Start Loans are cal- 
culated as a percentage of 
sales, similar to the way in 
which a royalty charge is made. 

Such royalties have been 
treated ■ under Section 233 as' 
a distribution of profits; with 
the result that, the bank has 
been able to provide finance at 
a lower interest rate 
equivalent. 

Until last week, for example, 
it was equivalent to interest of 
about 17 per cent, including 
ACT, in the third year. 


Without the Section 233 
advantage, the bank estimates, 
this will rise to about 20 per 
- cent 

Barclays said last night the 
matter had been drawn to the 
Government’s attention and the 
bank “hoped something could 
be done." The loans can still 
be negotiated at branch level 
but until the position is clari- 
fied head office approval will 
•not be granted. 

■The Chancellor is understood 
to have been particularly angry 
about .the abuse by big com- 
panies of Section 233 loans. In 
most cases payments fluctuated 
only marginally ■ with per- 
formance. 

Barclays, on the other hand, 
says Business Start Loans were 
not designed for tax avoidance 
and the advantage gained by the 
bank has been passed on to the 
borrowing company. 


Speculation 
over Long’s 
role at 


Stock Exchange to 
modify fee rises 


Th© Times MOORE. CITY CORRESPONDENT 


Reviews of National Enterprise Board plans 
uncaring’* to expand aid in assisted regions 


By Alan Pika 

REVIEWS BY companies of 
health and safety spending in 
tbe recession did not necessarily 
herald a “ return to the uncaring 
society of the industrial 
revolution." Mr Jim Hammer, 
chief inspector of factories, says 
in his latest report 

He acknowledges that the 
financial side of safety policies 
had come under scrutiny as 
companies became concerned 
with economic survival. 

Mr Hammer says, however, 
that the continuing unwilling- 
ness of industry, working with 
the Health and Safety 
Inspectorate and trade unions, 
to raise standards in particular 
fields “justifies rejecting the 
suggestion that we are 
witnessing a creeping return to 
Lrissez fa ire." 

Yesterday's report shows the 
number of deaths in industrial 
accidents covered by the Fac- 
tories Act fell below 300 for the 
first time to 294 in 1980. The 
total number of reportable acci- 
dents. 184,824. dropped below 
200,000 for the first time. 
Manufacturing and Service 
Industries 1980 — Health and 
Safety Executive £5. 

End police 

committees 

-Anderton 

By Liwj Wood 

A CALL for the abolition of 
police committees, to keep 
police totally independent of 
local politics, was marie yester- 
day in a controversial speech 
published by Mr James Ander- 
ton, Chief Constable of Greater 
Manchester. 

Mr Anderton has had serious 
differences of opinion with his 
La hour-controlled police com- 
mittee over the level of accoun- 
tability a chief constable should 
have to his committee. 

He said there was increasing 
evidence of the “ blatant use ” 
of police authority machinery to 
serve political ends. 

He called fnr the abolition of 
the committees, and their 
replacement with non-political 
police hoards. 

This speech was descrih»id as 
disgraceful hy Mr Peter Kelly, 
chairman of the Greater Man- 
chester Police Committee. He 
said at a Press conference that 
if Mr Anderton was going to 
make stupid speeches with 
political views he would have 
to face the consequences and be 
prepared to “get some stick 
back.” 

TRIDENT 2 DEAL 


BY JOHN ELLIOTT, INDUSTRIAL EDITOR 


THE National Enterprise Board 
has launched a fresh bid to ex- 
pand Us influence in the 
assisted regions. It is setting 
up investment companies in key 
areas and hopes to invest a 
total £20m in the next three 
or four years. 

The first two investment com- 
panies are being set up in the 
South-west and on MdKjeyside. 
They will he followed by others, 
in Lancashire and elsewhere. 

The board, part of the Brtish 
Technology Group, is also seek- 
ing partnership arrangements 
with various local authorities 
in the North-east and other 
regions, find investment oppor- 
tunities. 

In its six-year life the hoard 
has invested only about £8m in 
the regions. A fifth of the com- 
panies involved are Believed to 
have foundered. Mr Arthur 
Ward, the regional director, 
said yesterday ihis failure rate 
was in line with the experi- 


ence of most venture-capital 
companies. 

Now it hopes to Invest £3m 
to £5m of its new £20m regional 
budget in the next 12 months; 
The overall investments made 
by the British Technology 
Group will total £50m this year: 

The first investment company 
has been set up to cover Devon 
and Cornwall in partnership 
with Darlington and Co. the 
merchant banking subsidiary of 
Dartington Hall Trust 

It will have an authorised 
capital of £2m, the first £lm 
being provided In two tranches 
of £500.000 by the NEB (90 per 
cent) and Dartington (10 per 
cent). 

A further £lm is to be 
sought in tbe coming year from 
other private sector sources. 

Dartington will manage the 
fund, supervised by a board to 
include represetuatives of local 
interests. Investments will 


range up to £100.000 and tbe 
fund will normally seek an 
equity stake of- 20 per cent to 
40 per cent 

A second fund will be set up 
on Merseyside on broadly simi- 
lar lines, except tha the private 
sector partner, CoHinson Grant, 
management consultants, will 
not subscribe any capital. This 
fund will cover the Merseyside 
special development area. 

Links are being established 
with the Merseyside Develop- 
ment Corporation an a wider 
basis, giving the corporation 
access no tonly to the enterprise 
fund but also to tier British 
Technology Group cash. 

• A maker of microprocessor 
signal equipment, Mikra Indus- 
trial Investments of Sonderiand, 
is to be backed by up to £70,000 
in BTG funds in a financial 
package to include £75,000 from 
the Midland Bank under the 
Government’s small businesses 
loan guarantee scheme. 


More factories for rural Wales 


BY ROBIN REEVES 

A BUDGET increase and a 
new advance factory programme 
have been approved for the 
Development Board for Rural 
Wales by Mr Nicholas Edwards, 
the Secretary of State for 
Wales. 

During 19S2-83, the board, 
which has responsibility for 
improving the economic and 
social infrastructure of the de- 
populated region of mid-Wales, 
is allowed a gross expenditure 
of £11.4m. of which about £6m 
wilt be spent on new advance 
factories. 

The factory building pro- 
gramme includes 29 new units 
and four factory extensions 


totalling 62,400 sq ft at 12 
locations in mid-Wales. 

The ability of the hoard to 
fill these and another 30 fac- 
tories now under construction 
will depend, however, on a 
review of regional development 
grant policy taking place in 
Whitehall 

When the Government 
assumed power in 1979, Sir 
Keith Joseph, who was then 
Industry Secretary, ordered a 
radical reduction, spread over 
three years, in the area eligible 
for regional development 
grants. It was cut from 44 per 
cent to 26 per cent of the UK’s 
land surface, to enable limited 


resources to be concentrated on 
unemployment blackspots. 

At the same time areas like 
mid-Wales, which had suffered 
a double downgrading, were 
promised . a special review* 
before being de-scheduled alto- 
gether 

Mr Edwards told the Com- 
mons- this week the review was 
likely to be completed in the 
next two to three months. He 
hinted, in reply to questions, 
that de-population and popula- 
tion sparsity might be taken 
into account. 

The original cut appeared to 
have been made solely on the 
basis of unemployment levels. 


Civil servants kept off Ulster board 


BY OUR BELFAST CORRESPONDENT 


NORTHERN Ireland’s new In- 
dustrial Development Board, 
which will spearhead the 
struggle for industrial recovery 
in the province, should be fully 
operational by August with a 
supervisory board which will 
exclude civil servants, Mr 
Adam Butler. Minister or State 
for Northern Ireland said yes- 
terday. 

The board, announced last 
August represents the Govern- 
ment's response to demands for 
stronger efforts to combat 
Ulster's 19.5 per cent unemploy- 
ment It will draw together 
various industrial development 
functions of government de- 


partments and the Northern 
Ireland Development Agency. 

' Mr Butler, addressing the 
Northern Ireland chamber of 
commerce, said a chairman and 
some board members would be 
appointed soon. The Govern- 
ment is still seeking a chief 
executive. It is believed a 
salary of up to £50,000 will be 
paid- 

The minister said the board, 
to be established by legislation, 
would consist of about 12 
people from industry, com- 
merce, banking and trade 
unions. It will also include an 
academic as well as one or two 
senior UK industrialists. 


He defended the proposals 
against criticism that the board 
would be dominated by civil 
servants and would not be suffi- 
ciently independent from gov- 
ernment 

It would be highly profes- 
sional and commercially orien- 
tated and as free as possible 
from red tape, but he added 
that ministers had to retain 
responsibility for industrial de- 
velopment. 

Mr Butler called for the 
wholehearted support of the 
Northern Ireland community 
and said the new body should 
not be undermined by “criti- 
cism born of perverseness.” 


| By. I vo Dawnay, Labour Staff 
I MR RUPERT MURDOCH will 
return to Britain from New 

■ York today amid widespread 
: speculation that he has asked 
i .Mr Gerald Long, managing 
; director of Times Newspapers, 

; to take another post at the 
| parent company, News .Inter- 
i national. 

. Last week Mr Long, 58. firmly 
; denied suggestions that he was 
j to quit his post Yesterday he 
refused to comment on his 
position. “I am not confirming 
or denying anything" he said. 

Mr Long, who was for IS 
years chief executive of Reuters 
news agency until he joined 
Times Newspapers shortly after 
Hr Murdoch bought the com- 
i psny last year, is a personal 
| friend of the proprietor. 

Last -month be headed a 

■ management team aimed at 
achieving 600 staff redundancies 
and the ending of over 900 
casual shifts after Mr Murdoch 
warned that The Times and 
Sunday Times would dose, if 
the ma nnin g cuts were . hot 

j achieved. 

I The proprietor withdrew his 
‘ closure threat last week after 
[ claiming that 70 per cent of ; 
I the cuts, accounting for a 
i saving of about £Sm a year, 

I had been achieved, 
i • Later today, Mr Murdoch is 
| to meet the six independent 
I national directors of the news- 
j papers to seek formal endorse- 
i meat of the appointment of 
Mr Charles Douglas-Home as 
successor to Mr Harold Evans 
as editor of The Times. 

The appointment is expected 
to be given unoppited backing 
by the directors and the board 
of Times Newspapers Holdings. 
A new deputy editor is also 
expected to be named shortly, 
tbough it is understood that 
i the appointment will be for a 
caretaken deputy to allow Mr 
Douglas-Home time to reorgan- 
ise staff at the paper. 

Mr Anthony Holden, features 
editor and Mr Evans's most 
vociferous supporter over the 
past vw?ek. tendered his resigna- 
tion yesterday. 

Range Rover 
output up to 
300 a week j 

By Kenneth Gooding 
THE FOUR-DOOR version of 
the Range Rover has had bigger 
initial success than expected, 
so that total Range Rover out- 
put has risen to. 300 a week, 
thp highest ever. 

Mr Mike Hodgkinson. man- 
aging director of Land-Rover, 
the BL subsidiary including 
Range Rovir, said yesterday 
that Emir-door -version sales 
were so good that "even in the 
middle of a recession we arc 
temporarily short of Range 
Rovers in the UK and in 
Europe.” 

The company was in process 
of increasing Range Rover pro- 
duction for tiie second time this 
year, and working Saturday 
overtime to boost output. 

The success of the four-door 
version had helped the Rover 
company return to a stable 
trailing position. 

Last year the company 
struggled for survival with 
severely depressed demand and 
an nver-vaJued currency, but, 
he confirmed, made a net profit, 
the lowest since it became a 
separate entity in BL four years 
ago. 

Output of Land-Rovers is 680 
a week built-up. and 100 kits, 
roughly 55 to 60 per cent of 
present capacity, to increase 
considerably this year when 
more of the £2 00m five-year 
investment programme is com- 
pleted. 


THE STOCK EXCHANGE Is the Stock | 

modifying its proposals to in- to justify the lncreasK. If stock- 
crease charges on share and gilt- brokers require “ 
edspd transactions after wide- commission to provide extra 
££d most £ 

influential users of the market be provided • to assess the 

Sir Nicholas Goodison. chair- . 

man of the Stock Exchange. and The pension funds have also ; 
the ruling council, yesterday questioped the concept of un- . 
considered the written and oral limited liability for stock- j 
submissions of pension funds, in- brokers, and ha^e argued that | 
surance companies, unit trusts, its mechaniSRi shoma be re- 1 
■investment trusts and the accept- viewed. Merchant .hanks, .gw 


;hanget0 L”wa 

irises to fill gaps ; 

— left by ' j 

the Stock Exchange's arguments T A lr AV »' 
to justify the increases. If stock- JjdKCF 
brokers require an increase m 
commission to provide' extra By Lyntwi MAAi 

capital, more informationshould yEW 5BS yiGES to the US. to • 
be provided • to asse^ the fin imt 0 fr ^ caused by 
adequacy of a firm s capital. Laker AirwayACoHapjeOiave 

The pension funds have also been announced . by vrans 
questioped the concept of un- world Airlines, .and ";Pin , 
limited liability for stock- American- WoridAitwaytv — i 
brokers, and have argued that Laker operated-. -sch6|uled ■ 
its mechanism should be re- services from Catwick Alp-art 
viewed. Merchant banks, .say f 0 New York. Los Angela*. and ; 


in® iimjses who had all pro- the funds, function quite 

tested at ' the proposed in- happily without unlimited iiabi- put into iweivtrsW* Ust ’ 

creases. A progress report by lity. i, 1 . I 

the Stock Exchange is expected The pension funds have also ' .« 'JUSLlli? 

today. raised the issue, of the Stock 

It is understood the pension Exchange’s continued separa- from tumieKtONCw JWkon 
funds have criticised the Stock -tion of the roles of principal April 26. Tills . service was . 

Exchange's moves to increase and agent. The funds say this planned before the I««r col- 

charges on major points of prin- separatism is under attack in lapse. 


to New -York. Los Angela*, and 
Miami before, the airing' was 
put into receivership: : list 


creases. A progress report by lity. 

the Stock Exchange is expected The pension funds have also 


today. 


raised the Issue of the Stock 


It is understood the pension Exchange's continued separa- 
funds have criticised the Stock -tion of the roles of principal 


charges on major points of prin- separatism is under attack in 
ciple. The funds have criticised overseas markets, while the 
the Stock Exchange for socking development of the financial 


Part, of TWA's new- business 
is expected to be taken by a 


me SMOCK CiAUUdUEe 1UI avvnuih ..V . . -if ' n|J,i . 

a commission increase when the futures market will, in their i 

AAnnnml. Ir BAinff thmuph n vipw make the senaratism more 1 charter tickets to tw Ua .Jet- 


economy is going through a view, make tbe separatism more 
difficult period. hazy. 

In addition, members of The funds have asked the 
funds, including pensioners, are Stock Exchange whether it can 
receiving wage and pension in- retain control of the develop- 


ways is promoted by Triweilerj 4 , 
Air. a company formed with j 


The funds have asked the ^”=27^2 
ock Exchange whether it can 

tain control of the develop- ^e UK sales aoff m a rk e ti ng 


receiving wage and pension in- reram wu«« “IT organisation or TWA ... 

creases below the level of infia- roent of dual capacity. The Bookings for Jetwajs fights. 

Tion. The funds said the rise funds have expressed concern 

in commissions would come at the extent and nature of the g 0 nttnwt 

when pensioners could not easily dual capacity of some brokers, ^ atrihw ■ 

afford such real cost increases, and are concerned at their own o carrv 10 OOP 522S. 

Like other market users, the legal position wash dealing with 0 capry 10 ™ p ?* wn ’- 

pension funds have questioned such firms. * tvva‘ said that if iWXJatwlck- 1 

to-New York servire'- wis, a I 

“ success it hoped to start more ! 

m scheduled services from the air- > 

Possate leaves mam 

X VOgttLV iVUTVO ******** Miami, from Gatwick. whWi in-1 

vfrived the carriage by Laker of 1 
-u j t tt j 500,000 passengers in a fuH year. » 

board at Howden sm «£« 

line plans to start three extra ( 
DC-10 airliner Sights from 

BY JOHN HOOKE, CITY CORRESPONDENT Heathrow to Miami this summer. J 

This will give Pan Am 10 round | 

A MAJOR boardroom rift has year at Howden, will atffl 

developed at Alexander Howden remain chairman of the under- • *n«. mZSSFtH' 

Group, the financial holding writing agency subsidiary com- Lord Bethel! s case against the 
company with extensive Lloyd's pany and continue ot head two European ^mmi^Ion for 
broking and underwriting of the largest underwriting allegedly allowing airlines tn 
interests. Mr Ian Posgate, the syndicates at Lloyd’s. Mr Pos- ft* high fare® begins. 4n the 
group’s star underwriter, has gate underwrites on behalf of European Court in Luxembourg | 
resigned from the main board about 3.000 members of Lloyd's, tomorrow. 

and the group’s executive com- He has been at odds with f Inirric Ifca nitrate ’ 

mittee. other Howden directors for LM>yuS DailK CUK _ - j 


Posgate leaves main 
board at Howden 

BY JOHN MOORE, CITY CORRESPONDENT 

A MAJOR boardroom rift has year at Howden, will atiil 
developed at Alexander Howden remain chairman of the under- 
Group, the financial holding writing agency subsidiary corn- 
company with extensive Lloyd's pany and continue ot head, two 
broking and underwriting of the largest underwriting 


and the group’s executive com- He has been at odds with f Irivrlc Kanlr mix 
mittee. other Howden directors for UOyOS IMBK CUB ; - 

In a resignation letter to some time over the Lloyd’s Bill hotllft loans rate = 

5™.? “J™?.™’* 5? *5 it ■■THE BATTLE, bttwwh 


Grob on Monday Mr Posgate, regulation. 


Posgate 


one of the UK’s' highest “paid been a strong supporter of ^omelMn 

mmnamr riirortnrc Raid bp. was mnucune tn fm-pp T.l nvrt'c insiir- in £ societies in the home IMn 


company directors, said he was measures to force Lloyd’s insur-. mar^t hicreaseri vesterSvl 
"disappointed” at not being an ee brokers to sell their share- S t h 

SfcSiSyisS 

SjUnLj&taSrrtEh ™ c ™vc tel,™ rowly tnSjjw <S 


bid for Howden last year. 


directors, who have said the 


anooiSed that t Sthou-lTone d S “mjunously" affected through itB mortgage rate and: claims, 
CmmbmTtte «ecu- lo!S o£ taportant ***“,£* > ^ ! 

tive board. I was allowed to play "KLt. a and ma,OT . 


™ Dart in the 3 takeover by Mr ^ D0W a member ot : MUUU ^SdetiesT ■■ ; • 

Alexander and Alexander " 7 ^ ™ling committee of Lloyd's, . it -calculates that the annual • 

He said he was subseouentlv P 376 crucial and damning percentage .rate on its mortgage: 
exdudedfrott^T policv-Siaking evidence before a parliament aw works; out at FL2 per cent, 0-3 
meeting in the U.S’ "while committee last year which ^percentage points below .the 
others not on the executive caused parliament to insist that comparable building society and 
boerd were ’nvited.” Lloyd's hrokors sell off their bank home loan rates. 

A copv of tbe letter has been shareholding links. Williams & GlynV Bank, 

^nt to Mr Jack Bogardus, chair- He detailed a senes of abuses which is less active than the 
man of Alexander and Alex- which arose through the brokers' others in the home loan market, 
ander. and the resignation will ownership of the management cut its mortgage rate -to : 13} 


GlynV 


He detailed a series of abuses which is less active than the 
rich arose through the brokers' others in the home loan market, 
mership of the management cut its mortgage rate : *to ; 13} 


be considered at a board meet- companies 
ing of Alexander Howden today, syndicates. 

Mr Posgate, who is estimated Petitlo 
to earn more than £300,000 s- 


■ underwriting 


Petition on Lloyd’s Bin, 
Page 10 


Housing industry’s future 
‘lies in private sector’ 


BY WILLIAM COCHRANE ' 

THE HOUSING industry's economically and socially, 
future lies in the private, not Public housing and its contri- 
ve public sector, according to bution to public spending had Terire* controversy orer 
Sir Lawne Barratt, chairman of been one o£ the mam faaors senior coverriment offirials ioin- 
Barratt Developments, the large causing inflation in Britain, w th/' private sector in fields 
housebuilder. — — 1 - e xn “ P nvale seclor m 


per cent yesterday, which gives 
an annual percentage Tate of 
14.5 per cent. 

Rampton appointed 

Sun Oil adviser 

Permanent Secretary at the 
Department of Energy, has been 
appointed a paid part-time 
adviser to Sun Oil. a U.S. com- 
pany with substantial interests 
in the North Sea. 

The move Uas been approved 
by the Diamond Committee, 
which examines the recruitment 
of . .former ., civil servants _ by. 
industry. But the appointment, 
204nonths after Sir Jack- left 
the Department of . Energy. 


Public housing cost on average related t0 . ^ former nspon- 
peaking at a 50 per cent more than private sibilities.- ^ " _ ~ 

on yesterday housing to ; build. It was badly Sun 0 il said yesterday that 
stocWirokers design^— creating ghettos in Sir Jack . s job wo ^ d be t0 -help 

aivnoh hhmr manv nf uur nstv mmirac 11 J 


BY BRIDGET BLOOM 55!?4 


Sir Lawrie was speaking at a 50 per cent more than private 
conference in London yesterday housing to build. It was badly 


British chances of U.S. subcontracts seem slight 


Savory Milln to launch their many of our city centres *nd 


1982 Building Book. 
Tbe brokers said 


private 


badly managed. 

Sir Lawrie said public sector 


us become better corporate 
citizens in the UK and other 

housing in the UK should begin housing was being demolished internat ^°* ,aJ areas, 
a sustained recovery in 1982. every week. “ Some of the stock Investment urged - 
“New household formation is is so bad that it should be c • . . , .. 

expected to rise until 1986," the demolished,” he said. Some, he lOr WatermQUSu*y ■ 
book says, “ and tbe collapse of suggested, was badly managed THE WATER industry ib 
the public sector housing pro- but worth keeping, and could England and Wales needs an 
gramme means that, once con- be sold to tbe private sector. increased investment over the 
fidence returns, private sector • In Glasgow today Mr Bill next five years, building up to 
demand should be strong." Bruce, chairman of the Scottish an extra £100m a year by 1987. 

In an outspoken attack on the arm of Barratt Developments, is to tackle the backlog of renova- . 
public sector, Sir Lawrie said expected to announce group tion of water mains arid sewers, 
that its stock of 7m houses, a plans for dealing with «he re- said the National Water Council 
third of the country’s housing newal of public sector housing yesterday 

stock, was bad for the country throughout the UK. Annuai investment of £225m 

in renewal appearel too low, 

- ■ — . said the council in _ its Water 

Industry -Review 1982.' 

While Sewer deterioration 

OBITUARY was not a universal problem in 

areas affected by deterioration, 
such as in the North West, a. 

T) Af . ' veiy costly effort was needed u 

CCD J\iPllIlU overcome the backlog. - 

* ® The European investtnent- 

BEN KIPLING, who died at the nationalisation Bills of .the 7o° 

weekend, was one of a team who immediate post-war era. towards the cost of water supply 

worked , in the post-war years . He- was recalled to other Sid ^owerage KhraS ™ 

loans bring to almost £45 Om the 
loan finance which the EDB 
channelled- through the cotriioi 


HOW WILL British business 
benefit from the decision to 
replace the Polaris nuclear 
deterrent by the U.S. Trident 2 
or D5 missile system in the 
1990s? 

Mr John Nott Defence Secre- 
tary. announcing the deal last 
week, noted with evident 
pleasure that he had secured 
“ more advantageous terms ” 
from the U.S. than on any 
previous nuclear weapons deal. 
These terms included a new 
element 

He told Parliament British 
industry would be able “to 
compete on equal terms with 
U.S. industry for subcontracts 
for weapon systems components 
for the D5 programme as a 
whole, including the American 
programme." 

Wbat does this mean? 

Should British defence indus- 
tries be getting' excited about 
the prospects of substantial U.S. 
as well as UK nuclear weapons 
business? 

The deal covers a £7.5bn pro- 
gramme (at 19S1 prices) to. 
replace the four. Polaris sub- 
marines with four much larger 
Trident submarines. Each ' is 
likely to have space for 16 
Trident D5 missiles, although 
only 12 may be carried. 

The number of warheads on 
each missile will remain classi- 
fied, but it appears each 
British missile will have no 
more than eight, against the 
likely 14 in the U.S. version of 

the D5. , , . 

British business stands to 
benefit in two ways. First, 
from contracts won in this deal. 


second from possibly competing 
for subcontracts in the larger 
U.S. programme. A separate 
matter is the U.S.-UK govem- 
ment-to-govemment agreement 
that the British Rapier air 
defence system will be bought 
by the U.S. for its air bases In 
Britain. 

As things stand, British 
Industry’s chances of competing 
for U.S. Trident business seem 
slight 

The Defence Ministry is coy 
about what proportion of the 
£7.5bn will be spent in the U.S. 
It Seems to be assumed that 


search Establishment (AWRE) 
and the submarines' all-British 
pressurised water nuclear 
reactors. 

The Trident-generated busi- 
ness will be important for 
British industry. Ironically, 
however, it may not represent a 
net gain. Vickers, for example, 
the only shipyard capable of 
building the submarines, will 
have to stop bnilding the SSN 
nuclear-powered submarines and 
probably postpone the planned 
new diesel-powered T24Q0 sub- 
marine while it capes with the 
four Trident vessels. 


This morning Mr John Nott, Defence Secretary, 
appears before tbe Commons select committee on 
defence on the Government’s decision to spend 
f 7.5bn on the Trident 2 missile system, which is 
intended to replace Britain’s Polaris nuclear- 
deterrent 


some £4bn will be spent in 
Britain. 

Spending Is: 

. + Submarines 35 per cent 
#- Shore construction 8 percent 

# Weapons- systems equipment 
17 per cent 

# Missiles 17 per cent 

# Warhead design, production 
and unallocated contingency 23 
per cent 

The main spending in Britain 
will be on the submarines — 
which at nearly 15,000 tons dis- 
placement are almost twice as 
big as Polaris— the warheads, to 
be built under the authority of 
the Aldennaston Weapons Re- 


For Rolls-Royce and Asso- 
ciates, the defence consortium 
which manages the Navy’s 
nuclear propulsion programme 
“ from cradle to grave ” Trident 
could represent a fall in busi- 
ness. 

The consortium— K-R, Bab- 
cock International, Foster 
Wheeler and Vickers — will pro- 
vide Trident's nuclear reactors. 
The Trident submarines, how- 
ever, are expected to delay a 
start on construction of a new 
generation of Hunter-killer 
boats using nuclear reactors, 
while the bigger Tridents will 
take longer to build. 


The British Tridents’ war- 
heads will provide work for 
companies “ downstream ’’ from 
the AWRE, but is likely to be 
less than bas been involved in 
Chevaline, for example. This is 
a £lbn-plus, entirely British 
project to enable Polaris 
missiles to penetrate Soviet 
anti-ballistic missile defences. 

What of British companies’ 
chances in competing for U.S. 
Trident business? 

Lockheed is tho main con- 
tractor for the missile — as it 
has been for Polaris and 
Poseidon — but says it is too 
early to judge the size of the 
likely order from the U.S. 
Government, or the possible role 
of the likely “ hundreds” of 
subcontractors, U.S. or foreign. 

The U.S. Navy has on order 
nine Ohio submarines, each 
capable of launching 24 Trident 
D5 missiles. It has a “ wish list ” 
of five to 20 more submarines. 
What it eventually gets, above 
the nine, will depend partly on 
tbe size of the U.S. budget 
deficit and on defence policy. 

Spending is small on Trident 
2 so far. Just under 5400m 
f £22 1.6m) Is planned for 1983. 
although the missile’s develop- 
ment programme is put at some 
S8bn over the next seven to 10 
years. 

British companies face two 
major hurdles. 

They must overcome estab- 
lished patterns of supply from 
U.S. companies — Lockheed says 
it cannot recall an example of 
subcontracting missile parts to 
a foreign company. 


They must overcome Buy 
American legislation and 
prejudice. 

Mr Nott told Parliament of 
a U.S. undertaking to waive 
certain Buy American legis- 
lation. but his exchange of 
letters with Mr Caspar Wein- 
bergert, U.S. Defence Secretary, 
covering the deal is less 
specific. 

British companies would like 
this confusion cleared up, 
especially given the anti- 
European mood of Congress of 
past raorrtbs. 

The big British names— 
British Aerospace. Marconi, 
Ptessey, Lucas and others— feel 
they are up lo competing, if not 
in areas such as the missiles’ 
motors, at least in the guidance 
systems, electronics and war- 
heads. 

Some suggest the Government 
should try to negotiate specific 
spending targets for British 
business. Others are sceptical of 
the whole deal on political 
grounds, wondering whether 
any U.S. Government could 
allow key parts of a strategic 
contract to go to a foreign 
company whose government 
might after the next election, 
cancel the whole Trident deal. 

No company is sanguine, but 
at least all see the potential for 
business as a step in the right 
direction. 

* Defence Open Gov. Doc. 82/1. 
Min. of Defence. 
t Cmnd 8517 3MSO SU5. 

Additional material pro- 
vided by Reginald Dale in 
Washington and David Fish- 
lock in London, 


OBITUARY 


Ben Kipling 


BEN KIPLING, who died at the nationalisation Bills of .the 
weekend, was one of a team who immediate post-war era. 
worked in the post-war years wag recalled to other 

to build the reputation of the important responsibilities in 

expanding Financial Times. the night editorial department i oan finance which the EDB iu» 
Born on March 31 1-911. he and before Jong was appointed channelled- through the council 
joined the Financial News in night editor, a post in which he to local water authorities for 
1925 at the age of 14. From had to deal with all the tensions water and sewerage projects- 
doing routine jobs he soon took of a growing paper. ■ 

on heavier responsibilities. By His health began to fall In IN C WSDRD ff to CiOSC 
the time the Second World War the 1960s but after bouts of THE Nottingham Nw& . fl 
started in 1939 he was a senior illness be would return, deter- . . «* 

sub-editor, mined to continue to play his 


sub-editor, mined to continue to play his 

During the war he served in part . . 

the army. There his journalistic He became assistant editor In 


weekly newspaper set 'up iff ? 8 . 


ago, is to close because of 
ancial difficulties. The last 


talents were used to produce charge of production, where his edition of the.NUJ backed 


:ation will go . on sale on . 
riday. v ;■' > 

The journalists were.- ® 5 ’ 


army newspapers in North abilities proved invaluable, lication will go on sale on 
Africa and Europe, Ever friendly, rock-steady and Friday. 

By 1945 the Financial News ready to help anybody, he was The journalists wore - d* 5 * 
had merged with the Financial sorely missed when he had to missed bv the Nottingham. 
Times. Ben Kipling returned retire early at 61 on health Evening Post for joining J! 
briefly to tbe sub-editorial table, grounds. Our deepest sympathy strike. They sst up a worker* 
He was soon appointed parlia- goes to bis widow and. three co^ehtOTfffSi^ 


He was soon appointed parlia- goes 
fientary correspondent. The sons. 
Commons was sitting all hours 
of the night debating the 


C-U- 


paper. Only six editorial f 3 * 
remain and they ,wiU\contim w 
to draw union pay. ‘ ; . • . 







. -' v ' 




■?-:>■ 


:j*5$4&* : 


&«***■ 


.Wnaimiaj. Times .Thursday March 18 1982 


Wednesday March 17 1982 


Food for thought flower on your table. Seroice is 

We want you to dine well, so we discreet, attentive and friendly, 
offer a choice of five entrees, You’ll be presented with an 

varying according to flights. elegant toilet kit, specially designed 

We include such dishes as Duck by Ralph Lauren, no less. _ 
with mangoes and Lobster 
Thermidor. 

^s5=\ And we have a superb 

wine list - you can choose 
<mot only from classic French 
wines, but also from superb Cali- 
fornian Chardonnays and Cabernet 
Sauvignons like Mondavi and 
Freemark Abbey (4-stars, in 
authoritative guides). \ . 

Service second to none. 

All is served with distinction on 
mono 


We didn’t find it easy 
to improve our First 
Class. But we did it by 
re-examining every- 
thing. And improving it 


full details, 


grammedc: 


■Main Agent 







iV* :;a‘‘ 


Thatcher agrees 
to address UN 
on arms control 


UK NEWS - PARLIA MENT and POLITICS 

Tories fail to muster support for sale of BR assets 


Financial Times Wednesday Ilian*-' 19S2 


BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT 


BY IVOR OWEN 

: ; THE PRIME MINISTER has 
agreed to address the United 
Nations for the first time in 
June as a gesture of Britain's 
readiness to play a- leading role 
in supporting anw new initia- 
tive to secure an effective end 
to the nuclear arms race. 

'• Announcing this in the Com- 
jnons yesterday llrs Thatcher 
imderlined the Government's 
{reservations over the offer made 
earlier in the day by President 
Brezhnev to insititute a uni- 
lateral freeze on the deployment 
of new medium-range nuclear 
missiles in the Soviet Union's 
European sector. 

: The Russian leader's propo- 
sal, she said, ignored two facts. 

; “First, it freezes the total 
Superiority of the Soviet Union 
in these particular theatre 
nuclear weapons. 

. “ Secondly, it ignores The fact 
that The SS-20 can just as well 
he deployed targeted on This 
country and rhe rest of Europe 
Jrom beyond the Urals as they 
can this side of them.” 

• Before announcing her_ deci- 
sion to address he United 
Nations’ second special session 
on disanuamenl the Prime 
Minister reaffirmed her belief 
that such negotiations must be 
undertaken from a position of 
strength. 

; She agreed with Sir Russell 
ifairgrieve (Con. Aberdeenshire 
West) that there • was wide- 
spread support for the Govern- 
ment's decision to continue 


Britain's independent nuclear 
deterrent through the acquisi- 
tion of the advanced Trident II 
missile from the United States. 

The precise timing of the 
Prime Minister's visit to New 
■ York -has still to be decided, 
but it will take place alter the 
Nato summit in Bonn on 
June 10. 

Mrs Thatcher will have had 
an earlier opportunity to con- 
sult President Reagan on the 
attitude of the U.S. to the 
United Nations' disarmament 
discussions when he visits 
London as the guest of the- 
Queen from June 7 to June 9. 

The Prime Minister again 
emphasised the importance 
which Britain attaches to main- 
taining elose accord with the 
U.S. bv a coutious response to 
a suggestion by Mr Tom Urwin 
(Lab, HoughtoD-le-Spriug) that 
Britain sho6ld back President 
Mitterrand's initiative for an 
independent European defence 
policy. 

She stressed the need to be 
“wary” in considering new 
European defence alignments 
when Nato was already, in 
being. 

“It seems to me that would 
not in the end unite the Western 
world in defending its own 
interests because it would open 
up the possibility that we could 
be divided from our friends 
across the Atlantic who are the 
ultimate guarantors of Euro- 
Dean freedom." 


‘A’ PROPOSAL from Mr John 
Farr (Con, Harboroughi to sell 
all British Rail's hotels and 
cafeterias, railway workshops. 
Seal ink ferries and 7,000 miles 
of branch line was defeated in 
the Comhions yesterday by a 
majority of 14 (166-152). 

Less than half the total 
number of Conservative 3IPs 
supported the measure. 

The scheme was opposed as 
“a nonsense" by Mr Peter Snape 
(Lab, West Bromwich East), 
who is sponsored by the 
National Union of Railwaymen. 
He saw it as an attempt to sell 
public assets "at a knockdown 
price to the Government’s 
friends in the City of London.” 


Mr Farr tried to introduce it 
in the form of a Ten Minute 
Rule Bill — a device used to test 
opinion on a controversial sub- 
ject rather than to get legisla- 
tion onto the Statute Book. 

. Mr Farr .said he and his con- 
stituents were exasperated by 
the recent strikes by Aslef, the 
drivers' union, which had cost 
£l0m. He thought British Rail 
should get out of property, 
hotels, catering and shipping 
.and concentrate on running an 
efficient natipnai railway, net- 
work. 

“The economic situation nn 
the railways has changed 
dramatically for the worse," he 
said. '* Once again the long- 


suffering taxpayer looks like 
picking up the bill." 

He proposed selling to the 
highest bidder 26 railway 
'hotels, 30 Sealink ships and 13 
railway workshops employing 
39,500" people. 

' ' He complained that British 
Rail Engineering had a mono- 
poly of BR business and private 
wagon builders, such as 
Standard' Railway Wagon Com- 
pany tif Stockport, were not 
allowed to compete. 

Mr Farr claimed that the 
Engineering Division's export 
performance had been meagre 
and it had captured only 1.3 per 
cent of the world rail equipment 
market. 


He proposed a holding autho- 
rity (o take over 7,000 miles of 
track— « third of the total — and 
dispose of it to local con- 
sortiums of businessmen, indus- 
trialists, hotel owners, and 
tourist interests. The consop 
tiuras, he suggested, should run 
the lines, with the local authori- 
ties or tourist authorities. 

“The lines would not neces- 
sarily be profitable but at least 
they could provide the sort of 
sendee the public needs,” said 
Mr Farr. 

This had been done uery 
successfully abroad, notably in 
Switzerland, where state-owned 
and independently owned rail- 
ways worked in harmony. 


re?orm^f back Brittan launches attack on SDP 


Petition on Lloyd’s Bill 

BY JOHN MOORE CITY CORRESPONDENT 


MR NICK PARKER, an under- 
writing member. of Lloyd's, is 
to lodge a petition with the 
House of Lords at the end of 
this week seeking to remove a 
clause in the Lloyd's Bill classi- 
fying all members of Lloyd's as 
either working members or 
external members. 

If the House agrees to the 
change Lloyd’s may have to call 
a meeting of its 20.000 members 
to gain their approval. 

Mr Parker argues that since 
the external members of Lloyd’s 
contribute around 80 per cent 
of the capital “there is no 
justification for treating such 
persons in a wholly different 


way from those who would be 
classified as working members." 

The move would be divisive, 
he says. 

His petition also argues that 
a new Lloyd's council should be 
elected by all members voting 
together. 

The Bill proposes that the 
two classes of member would 
separately elect 16 working 
members and eight external 
members. 

Up to six more petitions are 
planned as resistance to the 
Bill grows. Lloyd’s may not 
be able to muster enough sup- 
port for the legislation if the 
Bill has to be approved once 
more bv its membership. 


rates system 

By Robin Pauley ~~ 

THE associations of metropoli- 
tan and district councils both 
called last night for an urgent 
reform of the rating system and 
the introduction of a local in- 
come tax to supplement rates as 
soon as possible. 

The Association of District 
Councils, representing all 333 
district councils in England and 
Wales, told lhe Commons en- 
vironment select committee 
that district and county coun- 
cils should have separate 
methods of raising funds. 

The district councils should 
receive all their income from 
fees and charges and from 
rates, which should be extended 
to cover agricultural buildings, 
Crown property and nationalised 
industries. Districts would re- 
ceive no government grants. 

The county councils, provid- 
ing some quasi-national services 
such as education, should be 
funded by some government 
grants plus a local income tax 
which would need to be levied 
at a rate of about 7p or Sp. 

All domestic property should 
be rated on the basis of capital 
valuations but rental values 
should be retained for all non- 
domestic property, the ADC 
said." 

The Association of Metropoli- 
tan Authorities told the com- 
mittee that central government 
grants to councils should be 
restricted to the amount needed 
to equalise discrepancies in 
needs and resources ' 

This would enable grants to 
be cut by a third and the loss 
could be made up through a 
local income tax under the con- 
trol of local authorities but col- 
lected on the basis of informa- 
tion supplied by the Inland 
Revenue. 


BY ELINOR GOODMAN, POLITICAL CORRESPONDENT 


MR LEON BRITT AN, Chief 
Secretary to the Treasury, 
yesterday launched the Con- 
servative Party's most detailed 
attack yet on the SDP with a 
claim that their popularity had 
begun to slide. 

Just over a week before the 
Hillhead by-election which will 
put his theoiy to the ballot box 
test, Mr Brittan claimed that 
people were beginning to ask 
a -few “ penetrating questions ” 
about the SDP. 

Mr Brittan was speaking at 
the launch of a new Bow Group 
pamphlet aimed at prompting 


precisely that kind of question. 
The pamphlet, entitled- Left- 
overs: .the SDP, a Critical 
Analysis, amounts to a hand-' 
book for Tories trying to attack 
the SDP. 

It systematically goes through 
the SDP's. policies and sets out 
the Conservative Party's argu- 
ments against them. On propor- 
tional representation, for 
example, it suggests that “ two 
simple debating points " should 
be made before examining the 
SDP solution — first, that thg 
SDP itself had not bsoome a 
broad-based party, and second 
that the demand for PR has 


Beaconsfield Liberals set 
for by-election choice 


BY ELINOR GOODMAN 

THE LIBERALS in Beacons- 
fieJd are .to choose their candi- 
.date on Friday for what is 
likely to be the Alliance's next 
by-election test after Hillhead.-- 

The choice has been nar- 
rowed tp three: Paul Tyl«r, 
former liberal MP for Bodmin; 
Bill Eastwell, who fought 
Beaconsfield in the 1974 elec- 
tions, and Sarah Curtis, who 
bought. Enfield. North also in 
1974. 

By selecting their candidate 
so soon the Liberals will make 
it impossible for Mr Roy 
Jenkins — if he fails at Hillhead 
next week — to use Beaconsfield . 
to have another go at getting 
into parliament. 

Mr Jenkins, however, hinted 
strongly yesterday that If he 
loses Hillhead he will not stand 
again. He said there was a 


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Further to the DIVIDEND DECLARATION of 15th Mnim. 
1982. NOTICE is now given that the following distribution win 
become payable on and after the 15th March, 1982, against 
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Bearer Depository Receipts. 

GROSS DISTRIBUTION PER UNIT 3.00 CENTS 
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limit to the number of by-elec- 
tions the human frame could 1 
stand. . . 

The Tories held Beaconfield 
in 1979 with a majority of 
21.495, making it one of their 
50 or so safest seats in the 
country. 

If Mr Jenkins wins Hillhead, 
the Alliance bandwagon could 
move on to take Beaconsfield. 
-For this reason, it was thought 
the Liberals might try to field 
a national figure. 

Among the .names suggested 
were Mark Bonham-Carter, 
victor of Torrington by-election, 
and Laura-Grimond, wife of 
Jo. More than 20 names were 
considered by the Beaconsfield 
party last. week. 

The Tories are also moving 
ahead with choosing a candi- 
date.' * 


MOTOR CARS 


always come From minority 
parties “ eager to increase their 
own representation in parlia- 
ment'' 

The pamphlet sets out to cast 
rhe SDP as a left of centre 
party. It concludes: " The 
SDP, however much it may 
attempt to disguise the fact, is 
not a party of -the centre, it is 
a party of the socialist lefL" 

The only difference between 
the SDP leadership and their 
old colleagues in the Labour 
Party, it claims, is that “ in 
order to appeal to Conservative 
voters they must play down 
their records and true belief." 


Talks on 
agenda for 
EEC Brussels 
summit 

Financial Times Reporter 

THE PRIME MINISTER and 
Lord Carrington yesterday met' 
M Gaston Thom. President of 
•the EEC Commission, and Mr 
Leo Tindemans, Belgian Prime 
Minister and current President 
of the EEC Council of 
Ministers, to discuss the agenda 
for the EEC Summit in Brussels 
later -this month. 

Mrs Thatcher is understood to 
'have made plain the British 
Government’s determination to 
press for a permanent settle- 
ment to its budget problem. 

However, the Government 
does not- appear overly 
optimistic ’of such a .settlement 
being concluded at the Summit 
and appears to be bracing Itself 
for ■ yet another protracted 
battle 


Zenith 36 Month Lease Purchase Scheme 
available for companies and self employed 
individuals. Cars to de registered before 37/3/82 

Escort L 5 door £150 deposit £33wkly _ 
Cortina 1.6 L £200 deposit £37 wkly, 

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TOKYO TRUST S.A. 
FINAL DIVIDEND 

A Final Dividend of U.S.S0.60 per share will be payable on 
7tii \pril, 1982. to holders on the Register on 8th March 
and to holders of the Bearer shares against presentation of 
Coupon No. 17 at the Paying Agents. 

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Bondholders are hcreh '£ Po :£ 1 ^ 

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""^Coupons duo on Auril 5. 1982 will 
bo oavablc at Me following banks: 
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CREDIT LYONNAIS, New Yorlc, 
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FLOATING RATE NOTES IBM 
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The- Imen-st amounting to US £77.94 
p«r bond of US SI. 000 nominal and to 
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rLQmln#Ji win paid art l/*h SwfQrnber. 
1982- against presentation of coupon 

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Registered Ofuee: 

aO Broad Street. Monrovia (Liberia) 

The Annual Meeting of »Mreholdprt of 
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at tnc office* of Barelaytrurt 
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on Monday. 5Ch April 3 BB2., at 1-1410 

a.m. with the following, 

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the results of operations. , 

— Changes In accounting poHClra. 

Election ol Directors. . 

A shareholder entitled to .«««■ 
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dejire to attend or vote at the meeting, 
shall deposit their certificates lor lltorK 
with appropriate Instructions, net later 

Thin Z K 1962. 

international Limited, at ntg address 
mentioned above. 


AD EL A INVESTMENT COMPANY SLA. 

JitTbm floa ting RAT E NOTES 1991 

NOTICE IS GIVEN pursuant to Con- 
dition 4 (CJ of the rerun and Conditions 
of the above mentioned notes that the 1 
-rata of interest, fa* iherele deflcnedi tar 
the Interest period ias Therein defined! 
.from January 13. T982 to July 13. 1982 
It at the annual rate of 16.025%. Tbe 
U.S. dollar amount to which the holders 
at coupons No. 2 *W be entitled on duly 
presenting the same tor payment will he 
550.76 tuoject to such amendments 
tnareto lor appropriate alternative arrange- 
ments by wav uJ JdluMmbno which we 
may make without -further notice. In the 
enmC Of an extension or shortening Of 
the above mentioned Interest period if. 

BANKAMERICA INTERNATIONAL 
NEW YORK 
Principal Paying Agent 


SWITZERLAND 

THERE IS GROWING CONCERN IN 
GREAT BRITAIN THAT 
EXCHANGE CONTROLS WILL BE 
ENFORCED AGAIN I 
FOREIGNERS can buy apartments 
freehold on LAKE GENEVA, in 
Monttaux near Lausanne, or all- 
year-round resorts: Si Corgue near 
Geneva, Villars. Varbter. Les 
Diablerets. Leysin. etc. FINANC- 
ING 60-70% AT LOW INTEREST 
RATES. ■ Also quality properties in 
France: Apartments io EVIAN on 
the Inks, approximately 35 mins, 
from Gansva. and luxurious villas. 
VERY NEAR THE 'BORDER OF 
GENEVA, built ro your specifica- 
tions. 

Advise area preferred 
Write to; Developer c/o Globa 
Plan SA, Mon-Repos 24, 1005 
Lausanne. Switzerland. Tel: (21) 
22 35 T2. Telex: 251S5 melie ch. 

SOUTH OF FRANCE. La Unndou. Apart- 
ment edge of tea. 3 bedims., Igc. ivg. 
rm.. bathroom, ihr. roam. Irg, balconies 
Want ana roar. A«Pt* acclaimed to be 
finest In area. Sale »r share transfer 
. in Jersey Co.. FF 1.250.000. Trt. Sw|t- 
' Eerland 030 4S4 SB. 

AIGOABLAVA — Minutes from Parado 
and A war hotel. Few superbly posi- 
tioned apart ents- Views across pool 
and 2 acre gardens to Mediterranean. 
Prices from £27,500. .Details Roberta 
4 1 Veele LI ml cod. *3 Wellesley Avenue. 

. I ver. Bucks. (0753) 653399. 


PERSONAL 


A SUPERB PIED-A-TERRE 

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ownership. Adjoining a delightful 
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adlacent to a magnificent Leisure 
Centre comprising sauash court*, 
gynosium. mum. Jaccual etc. Ample 
parking and garage spaces available. 
5 Minutes walk from underground 
stations and bus routes. 3% discount 
If exchange I* e ff ected before April 
1st. 1982. 

Telephone : Louise Warren. 

Kennington Estates. 
01-733 3353/8493. 


AMERICAN 

EXECUTrVES 

seek luxury furnished flats or 
houses up to £350 per week. 
Usual fees required. 

Phillips Kay & Lewis 
01-839 2245 


I^chaid tylght Cars Ltd 

. London's Largan Mazda Doalor 
offers the full range of 
MAZDA CARS & COMMERCIALS 
for immediate delivery. 

All cars covered by an exclusive 
_3-Year Written Warranty- 

■ Sales: 35a -37 Fairfax Road 
Swiss Cottage, London, NWS 
Tof: 01-328 7714/7727/7738 


CAR TELEPHONES. The Mg Yiame*. we 
have' tnem all. Before Buying, selling, 
leasing or part-oxchanglne a earphone 
contact the specialties Carphone Con- 
sultants Ltd., suppliers Of aporoved 
Marconi and Securlcor Radiophone 
eouipment. on 0225 6031 B or Telex 
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CORNtCHE. 1971. 65.000 miles, dark 

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£12.000 (without personal number I 
o.n.o. Reply 935 6290 after 6 pm. 


PUBLIC NOTICES 


, EAST SUSSEX COUNTY COUNCIL 
. _£2.00C.MD bins Issued on 17ih March 
1992 at a rale' or to- mature 

1 6th June 1 962. Total applications wrro 
£45,000,000 and there . are- LB.000.000 
bills outstanding. * 

NORTH BEDFORDSHIRE BOROUGH 
■ COUNCIL 

.-.55® 0,0 ® 0 Wlls issued on T7lh‘ March 
1952 at a rate or to mature 

Total -applications were- 
£500,000 and there are £2,600.000 bills 
outstanding. . . 

METROPOLITAN BOROUGH OF 
KNOWSLEY 

£1.000.000 bill* Issued on 17th March 
1982 at a rate Of 12 i»jj"„ to mature 16th 
June 1982. . Total applications were 
£10,000,000 and there ere £2,000.000 

bills outs tanding. 

CITY OF WESTMINSTER 
London Borough Bills amounting to 
£155 million were Issued on IBtti March 
1982 lor maturlrv on 15th June. 1982. 
Applications totalled £557 million- Tho 
minimum price of accepted tenders was 
£95.58': and 46 of tho. issue was 
allotted at this price. The average rate 
of discount was 12.4B34*.. 

. No other Bills are outstanding. 


EXHIBITIONS 


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So/ofrt: CHRISTOPHER WARREN-GREEN 
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ART GALLERIES “ 


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BROWSE & DARBY, 19 Cork St Wl. 01- 
734 7984._Biitlsh_PaintinB»_i.- Drawings. 

BLOND FINE ART. 33. Sackvllle SL. Wl. 
457 1230. MAX BLOND — Recent Paint. 
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DUKE STREET GALLERY. 12. Dake 
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Roger Parry — Vintage Photographs of 
the 20s and 3Qs Micnet Saule Srevzanow 
ski — Seouences from Bala California. 
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LINFIELD GALLERIES, Church Street. 
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6136. PrTER JOHN GARRARD, 
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Sunday inclusive. 


MATHaP GALLERY, 32, Morcomb Street. 
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in )9th _ Certurv and Contemporary 
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10 um-2 pm. 

MALL GALLERIES. The Mall. SW1 . 
ROYAL INSTITUTE OF PAINTER5 IN 
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Inc. Suns a Easter 16-S. Until 12 April, 
Adm. SOP. 

THACKERAY GALLERY, - 1 8 Thackeray St.. 
Kensington La.. W8. SUSAN HAWKER. 
Until 7 April. 


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F.O. Box 2126. Telex: 8-6237. Teh 2SS& 


- Mr Snape said there was one 

r fhc ointroenr’’ 

l this - proposal. Who wjm "nine: 

■ to buy the branch lines when 

- their ratio of costs to earnings 
[ was 2.5 to 1? 

' He saw no e\ idence that local 
1 councils would he prepared to 

■ spend money supporung branch 
lines. 

[ The rail workshop proposal 
, was an insult to the hard- 
working men employed in 
1 Swindon. York and Doncaster. 

. he said. 

t He said the Swiss had been 
[ subsidising their railways for 
. the past 20 years at four times 
the rate of subsidy to BR. 

1 Diversification 
may save jobs, 
PM suggests 

' By Ivor Owen 

SUCCESSFUL companies faced ■ 
with faliins demand for their 
products owe it to their workers 
to consider diversifying into 
new markets, the Prime 
Minister suggested in the Com- 
mons yesterday. 

She was replying to questions 
about Imperial Tobacco's plans, 
announced on Monfioy. to close 
. three factories over the next 
two years, with the loss of 1.700 
jobs in Glasgow, Stirling, and 
Bristol. 

Mr Michael Martin (Lab.. 
Glasgow Springbum) pointed 
out the contribution made by 
tho tobacco industry to lhe 
national exchequer and urged 
Mrs Thatcher to instruct her 
Ministers to look at the social 
consequencies of the redun- 
dancies and. if necessary, make 
representations to Imperial. 

The Prime Minister said she 
understood the concern caused 
by the impending redundancies, 
but told Mr Martin : '* One can- 
not urge people to purchase 
more of the prodrict? of smok- 

■ ing and tobacco. One simply 
cannot do that. I -am afraid. It 
is a matter of personal choice.” 

Mr Laurie Pavitt lLab.. Brent 
South) a leading opponent of 
the tobacco lobby, urged the 
Prime Minister to agree thdl 
when companies were in econo- 
mic. difficulties because, their 
products were : harmful to 
health they should be 
encouraged to diversify their 
activities. 

Mrs Thatcher commented that 
there was a time when diver- 
sification was fashionable, hut 
the situation had changed when 
it became apparent that a num- 
ber of companies were not 
expert in the areas they had 
diversified into. :: 

Unemployment 
and crime 
‘unconnected’ 

By Itor Owen 

RISING UNEMPLOYMENT is 
not linked with the crime wave 
now sweeping Britain, the. 
Prime Minister insisted in the 
Commons yesterday. 

The possibility of a 'connec- 
tion was suggested by Mr 
Michael Foot, the Opposition 
leader, after Mrs Thatcher had 
conceded that law and order 
is now the issue which is 
foremost in the public mind. 

To the dismay of some Tory 
back benchers the Prime 
Minister virtually ruled out 
any likelihood of the Govern- 
ment taking the initiative in 
arranging a new. vote by MPs 
on tbe reintroduction of 
capital punishment. 

Recalling that soon after the 
1979 general— election the 
Commons decided by a , 
majority of 119 against bring- 
ing back banging, she said she 
had considerable doubts that 
another vote would produce a. 
different result. 

Mrs Thatcher agreed with. 
Mr Edward Gardner (C.on, 
South Fylde) that the police 
should' make the fullest pos- 
sible use of tile increase in 
their numbers by making it 
clear that they would not be 
| intimidated or deflected from 
; their duties by any attempt to 
defame them as racists. 

Basnett urges fight 
on Employment Bill 

Financial Times Reporter 

MR DAVID BASNETT. general 
secretary of the General and 
Municipal Workers’ Union 
yesterday urged union members 
to resist tbe Employment Bill— 
“this fundamental attack on the' 
trade union movement by 
industrial action if necessary. 

Speaking in Glasgow. Mr 
Basnett, chairman of the TUC 
economic committee, warned: 
"Either the movement renders 
it Ineffective— or it will render 
the movement ineffective." 

Garel-Jones made 
a juniorwhip 

MR TRISTAN GARELJONES. 
40-year-bl<l Conservative MP for 
Watford, was yesterday 
appointed a junior Government 
whip. ' 

He replaces Mr Alas (air Good- 
lad, 36. MP for Northwich. who 
is promote d io Lord Commis- 
sioner of the Treasury in the 
whips office. 


Peter Riddell on BR Toiy 
Parly after- the Budget 

Treasury 
wins the 
initiative 

THE GOVERNMENT would 
h c wrong to count on n 
completely smooth ride from 
its back benchers over tho 
- ne*r few months, despite thfr 
widespread support for the 
Budget strategy within the 
Conservative Party, . 

. Peace may have broken 
' out, bur that docs not smut 
. either that there ta agree, 
men or that skirmishes will 
be . avoided - - on particular - 
issues. 

Back branch speeches dun* 
ing the Budget debate and . 
the private comments of Tory 
MPs this week reveal * 
number of important reserve- 
lions. - Nevertheless, tho 

Treasury has won the poli- 
tical Initiative. 

One leading “wet" sard the 
Chancellor had done' Just 
enough in all the right area* 1 
to buy-off the critics.- Re - 
remarked ruefully that quite 
a few MPs who had been very 
critical before Christmas ~ 
were now - only too eager to - 
find a reason lo support the 
strategy. 

The “wets” are -particularly 
concerned about social 
security, and their worries 
may surface both during the 
Commons Report Stage 'to- 
morrow on the Social Security . 
and Honsing Benefits BUI and 
when detailed proposals are 
brought forward later. 

Critics 

The main focus is on the 
5 per cent abatement of un- 
employment and* sickness 
benefit in 1980 1 In lieu of 
taxation. Many MPs believed 
the Government would restore -, 
this cut when benefits start to - 
be taxed this summer but this 
will not happen. - 
Mrs Thatcher told the Com- 
mons yesterday during Ques* :* 
tion Times that while a final 
decision bad yet to be taken 
any restoration would involve - 
higher contributions. The 
pressures to make up the 
5 per cent shortfall were re- 
flected in the comments over 
: the last week of Sir Ian 
Gtimour, Hr. Richard. Need- 
ham, Mr Chris Patten and Mr 
Keith Best 

The critics, are also con- 
cerned about the change In 
calculating the housing ele- 
ment in supplementary , bene- 
fits, and the scale of- the 
increase in the capital which 
can be held by recipients Of 
supplementary benefit 
; MPs on the right of the 
party such as . Mr Nicholas 
W Interton are also worried 
about the latter point since it 
discourages savings. - 
. In, general, the M wets M 
feel that .while the Chancellor 
was skilful in tbe distribution 
of bis measures the overall 
Impact is too small. This view 
. was argued, amongst others, 
by Sir Ian Gllmour, Mr David 
-Knox, Mr Stephen Darrell and 
Mr Charles Morrison. 

These MPs, and others such 
as Mr Patten . and Mr Alan 
Haslehurst. urged more belp 
for the unemployed. Some 

- MPs in the main stream - of . 

the party, such as Mr Terence . 
Higgins, welcomed the greater 
flexibility in the Medium 
Term Financial Strategy, 
which Mr Eggar said was. 
now dead. “ 

Albatross 

Therfc " have - ’’also “Kiienr.. 

- several- speeches -welcoming- - 
the Budget from the centre 

. and right of the party." .-.Hot - 
significant reservations w^re 
expressed by jt -couple of* - 
. senior backbenchers about \ 
the removal of restrictions on 
holdings of index-linked gill ; 
edeed stocks. . -V 

This point was made by. Mr 
Peter Hordern, . and . . was" 
strongly emphasised by Sir 
William Clark, the chairman.. . 
of the backbench finance . 
committee.' 

Sir WilUam described such 
index stocks as an “albatross” V 
in view of the mounting 
liability to repay capital. HeV 
questioned whether there 
would always be suffictenUr 
prudent economic manage-: 
meut to contain inflation,- but - 
he preferred paying a high 
rate of Interest. ''. v 

Mr Jock Bnice-Gard^n««' 
thg Economic Secretary : *® - 
Die Treasury, said it wain *d" T . 
least arguable that If Mure. .. 
governments will have • .* • 
greater reward for perpetu- 
ating inflation under a system. •_ 
of conventional gilt*, and. a 
greater penalty for perpetd- 
ating inflation under a system 
or indox-llnked gilts." : .-_- 
^ Fortunately, howtSVW,' 1 *W 
the Government gilt Issues d» : \ 
hot have to be approved -by. ... 
ttle ■ Commons, .and ■ do not > 
appear in the- Finance -31It - 
Indeed, tKere are ho~e8nfoM- ■ 
major proposals : .In the" 
Finance Bill which seen* ' 
likely to provoke -a W - 
revolt.: V - X T ' i: ‘ 

'Hie Bill- wtil- probably 
published- towards the epdl rf 
nexi week and will be vflr / 
°ng by the tfflndaxdr.oTttW'V. 
last decade. ; 'V 


828-Bffi. Kastera Bufatta, 1-6-10 ' iir*^^ 7 

PtaUMtB* CMtaWra. Tafcac 327104. Tab 295 4090 

Heum. Tit 0532 454969. WtoWoftam 914 HitigniJ pm. 

For Share Index and Business News Summary. Telephone 246 8026 
(number, preceded by the appropriate area code valid for London. 

Birmingham, Liverpool and Manchester). 

Al advertising k tabd to tta puUblKr’i emu term Ml cgnAdons, ends gf wt4di are anltabk og 

ffgiM. 


i PtaUMBt Hmn, 71 m 
454969. 


ss- a?ss sc * 1 * Tite 


LLOYDS El'RQFIMANCE N.vi ~ 1 W. 

Copies of the Audited Accounts of LliwH. c.. e .inii x-- 
the year ended 30th September, jmi _ ^urofij fiance- -H.y. far r 

... * artt now available from.*— - ' 

QU^n Y v°ctq A C % 




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Emawnal Times Thnrsda^March.lS_.I 9 S 2 , 


Financial. Times Wednesday March 17 19S2 

UK NEWS = LABOUR 




‘Dual-roster could end rail dispute’ I sit-in halts 


* Y PHILIP BASSETT, LABOUR CORRESPONDENT 


LORD McCarthy, chairman 
of the arbitration -tribunal into 
the British Rail flexible roster- 
ing dispute, yesterday raised a 
suggestion which many railway- 
men at the hearing thought 
might be a way out of the dis- 
pute. 

During the second day of the 
arbitration hearing, be ques- 
tioned the parties to the dispute 
— BR and its three unions — 
op the situation on the railways 
since the dispute os flexible 
rostering began. 

The BR Board claims it is 
“ untenable,” but Lord 
McCarthy suggested that trains 
had been running normally, de- 
spite apparently contradictory 
arrangements, and asked all the 
parties whether such a system 
would be impossible to run in 
the longer term. 

Many of the railwaymen — 
both drivers and guards — 
attending the hearing in Lon- 
don of the Railway Staffs 


Equity split 
over state 
ballot funds 
application 

By John Lloyd, Labour Editor 

EQUITY, the actors’ union, is 
to face an internal revolt 
against its controversial deci- 
sion to apply for state funds 
for its ballots. 

A group of Equity members 
is putting an emergency motion 
to the union's annual confer- 
ence, which begins on April 4, 
demanding that the executive 
reverse its decision to apply for 
the cash. 

Senior officials of the union 
have already had informal talks 
with the TUC ’over the issue. 
It is the only affiliated union 
to break ranks on the issue, and 
its comes at an embarrassing 
time for the TUC which is seek- 
ing mavimiim unity in its -pre- 
parations to mount its biggest 
cam paign yet against the Gov- 
ernment’s forthcoming employ- 
ment legislation. 

These informal discussions 
have not yet resulted in any 
change in Equity’s position. 
Officials believe the union will 
not come under serious pres- 
sure until after the special con- 
ference of union executives 
called to discuss the anti- 
Govemment campaign. on 
April 5. 

Among other recommenda- 
tions, this conference will be 
asked “not to seek, or accept 
public funds for union ballots 
under the 1980 Employment 
Act ballot funds scheme.” Mr 
Len Murray the TUC General 
Secretary has made it dear that ( 
any dissenting union faces pos- 
sible suspension or expulsion. . - 
The latest issue of the 
union’s journal 'explains why j 
its executive decided to apply ! 
for the funds. Mr Peter 
Plouviez, its genera* secretary 
— who is thought to be opposed 
to his executive’s decision— 
says that the deficit last year 
was £100,000 and the expected 
deficit dn the current year will 
he £250.000. 

The TUC’ts employment com- 
mittee will today start prepar- 
ing plans for extending its 
campaign against the Govern- 
ment's employment legislation, 
which includes financial help 
for unions legally attacked. 


National Tribunal thought that 
Lord McCarthy might be giving 
some indication of the findings 
of the tribunal which are 
expected in the next few weeks. 

He summarised the position 
since the dispute had arisen 
before Christmas: 

• Drivers belonging to the 
Associated Society of Locomo- 
tive Engineers and firemen 
have been working a 40-hour 
week based on the guaranteed 
eight hour working day, at the 
front of the train. 

• Guards on the same train be- 
longing to the National Union 
of Railwaymen have been work- 
ing a 39-hour week, based on 
flexible rosters of seven to nine 
hours, which BR would like to 
see adopted for its drivers. 

Lard McCarthy made dear in 
his questioning his concern 
about what would happen in 
the industry if the RSNT 
awarded in favour of BR but 


Aslef-rdther at executive or 
local level— rejected the tribu- 
nal's Endings. This was rein- 
forced by Mr. Ray Buckton, 
Aslefs general secretary, who 
said his members would “not 
buy flexible rostering at any 
price.” 

Many of the railwaymen — 
both drivers and guards — 
attending the hearing thought 
that Lord McCarthy might be 
giving some form of hin t about 
the finding of the tribunal 
which is expected within the 
next few weeks. 

BR acknowledged that it 

could cope in the short term 
with the arrangement of 
guards and drivers on different 
rosters and working weeks, 
though Mr Cliff Rose, BR board 
member for industrial rela- 
tions, said it was “not a satis- 
factory basis for continued 
running of the system.” Such 
a solution would, according to 
BR, have a damaging impact 


on the new “Trainman” con- 
cept. which establishes a Jine 
of promotion between guard 
and driver. 

Lord McCarthy was particu- 
larly impressed with evidence 
from the white-collar Transport 
Salaried Staffs Association, j 
which set in context the savings ■ 
expected from flexible roster- 
ing. The TSSA compared the i 
£12m which it should save over | 
the next five years with the , 
saving of £G5.5m from the 14,000 
jobs cut between May 1980 and 
December 1981. 

Lord McCarthy was suggest- 
ing that flexible rostering was 
not such a crucial issue that it 
would prevent BR from going 
to the Government for further 
investment. There were heated 
exchanges on this point between 
Lord McCarthy and Mr Rose. 
The latter said that Lord 
McCarthy’s “ oversimplified ” 
questioning was “ offensive ” 
and “not helpful.” 


Heathrow strikers vote today 


BY JOHN LLOYD, LABOUR EDITOR 


BAGGAGE - HANDLERS at 
Heathrow will be urged by 
union officials today to con- 
tinue their month-long strike 
over new working practices. 

The handlers’ mass meeting 
is on the first day on whieh 
British Airways tries to run 
aB its domestic flights. The 
airline claimed yesterday that 
it had ran 90 per cent of 
these fli ghts 

BA says that the system of 
baggage-handling by “volun- 
teers” from other sectors of 
its workforce is running so 
smoothly that it can cover all 
the work normally done by 
the handlers. 

These workers receive no 
extra money if they cover for 
the handlers in their own 

Vauxhall 
plant faces 
bonus action 

By Our Labour Editor 

WORKERS AT Vauxh all’s 
largest UK plant, at Luton, 
voted yesterday for industrial 
action . in two weeks if the 
company did not improve its 
bonus scheme. 

Union" officials say that the 
scheme paid only 50p to. the 
7,600 workers last 

week, though production of 
the Cavalier range had gone 
up from 29 an hour at the 
end of last year to 35 ah hour. 

Manual workers at the Dun- 
stable and Ellesmere Port 
plants have also expressed 
. disatisfaction with the scheme, 
but have not yet threatened 
action. 

Mr Jim Lambert, deputy 
convenor of the Transport and 
General Workers Union at 
Luton, said yesterday that the 
workers wanted a scheme 
which was related to effort, 
and not affected by delays 
caused by the company. 

• Talbot last night laid off 
another 2*200 workers at two 
Coventry plants because of a 
strike by 190 paint shop 
workers. About L400 workers 
have already been laid off at 
the Ryton assembly plant. 


working time, but receive the 
overtime rale for their rates 
of pay in their own time. 

The airline's claim that it 
had covered the effects of the 
strike was disputed by Mr 
Ron Todd, national organiser 
of the Transport and General 
Workers' Union, which 
organises the baggage- 
handlers. Mr Todd said that 
BA was not carrying mail or 
freights, and that baggage was 
being held up. 

Mr Todd said til at he would 
recommend continued action 
today because the airline had 
refused Ip compromise in any 
way. 

The union had offered 
. Immediate negotiations on 
1 the changes in working prac- 
tices with a view to agreeing 


Duffy plea on technology 


FINANCIAL TIMES REPORTER 

A SENSIBLE approach to new 
technology could lead to 
unprecedented prosperity and 
peace, Mr Terry Duffy, president 
of the Amalgamate d Union 
of Engineering Workers, said 
yesterday. 

“Failure to accept the chal- 
lenge of new technology would 
be tD sabotage our national 
future,” he told the union’s 
youth conference at Eastbourne. 
It must be used to benefit 
mankind, however, and the 
working week should be cut by 
10 per cent over five years to 
meet the challenge of industrial 
robots. 


He suggested an international 
trade union campaign to cut 
the working week to 26 hours 
by the year 2000 and urged 
workers to share available man- 
hours, stressing that people 
must be given the chance to 
work. 

He recognised fears that new 
technology would affect some 
workers’ livelihoods but said 
fear was often the forerunner 
of intelligence and that he 
believed, resistance to new 
technology would damage the 
chance to create the wealth 
needed to improve society, in 
industrialised countries 


Computer deal vote taken 


THE EXECUTIVE of the Civil 
Service Una on, which represents 
Civil Service manual grades, has 
voted against accepting a two- 
year deal to introduce com- 
puterised equipment into the 


WASHINGTON, D.G 

ARauussanceof 

Qraciousness 

A lm n ay liotcl in thfignsff 


-TTHTTrffl^ — acmlntitlkkL 



THE MADISON 


T<&e6G4S 


afaabBRG^fajrafpr 


on them within 21 days, so 
long as BA meanwhile con- 
ceded a return to the status 
quo before the new practices. 

BA says it will not return 
to the status quo because: 

• About 300 of the 2,000 
handlers have taken early 
retirement or voluntary 
redundancy since the dispute 
began. Therefore, says the 
airline, there is no possibility 
of going back to the previous 
position. 

• Negotiations between the 
management and the handlers 
went on for six months with- 
out agreement on new prac- 
tices. 

• While BA concedes that it 
is losing on post and freight, 
it now claims to be meeting 
its passenger schedules. 


Massey 

tractor 

assembly 

By Arthur Smith, Midlands 
Correspondent 

A SIT-IN protest hr two wages 
clerks bas halted tractor 
assembly at Massey Ferguson’s 
Coventry factory yesterday and 
prompted a management warn- 
ing about the future of the com- 
pany. 

Mr Michael Hoffman, presi- 
dent of the farm and industrial 
machinery division, said last 
night : “Not only are the people 
involved acting outside a 
recognised procedure but their 
action in halting production 
threatens Massey Ferguson's 
survival in a fiercely competi- 
tive farm-machinery market.” 

The company is seeking a cut 
of 725 jobs at its Banner Lane 
plant by the beginning oE next 
month. Because of the 
depressed world market, it says 
the reduction is crucial to cut- i 
ting costs and remaining com- 1 
petitive. I 

The two wages clerks are , 
thought to be protesting against 
the company not implementing 
a first-in. last-out policy of 
redundancy. 

According to one sbop 
steward : “ The two chaps have 
been with the company a long 
time. They each put a chair 
on the end of the two assembly 
lines and just sat there.” 

About 500 assembly workers 
were made idle, but made no 
protest “That is not the way 
we do things, 1 ' the shop steward 
said. 

Talks with the staff unions 
over 250 redundancies among 
the white-collar workers are 
progressing. But trouble is 
threatened over cutting 475 
jobs among manual workers. 

A meeting of the 3,700 pro- 
duction workers voted for short- 
time working or job sharing, 
rather than, redundancies. 


form cadi individual person or group mass subject to variation. There are no efficient means 
It is apparent that any further effect of a relationship is determined by the d em a n d for books 


CAN YOU 





OFFICES IN 
LONDON?- 


With London office rent and 
rates exceeding £30 sq. ft., 
Swindon at around a third the 
cost, is now proving a very 
attractive alternative for 
Headquarter operations. 

♦he second Chancellor, 


oannounce„ 1E,7S 



away by high speed train. And it’s even quicker to get tc 
Heathrow than it is from centra' London. 


housing for key personnel. 

A large underemployed workforce. 

Full start up assistance, including Introductions to funders. 
And plenty of room for new enterprise, with offices, factory 
premises and sites ready for immediate occupation. 

Get the facts from Douglas Smith, 
industrial Adviser, 

Civic Offices. Swindon. 

Tek(0793) 26161, or Telex 44454a.. ; *. \\ 




s? & A ' i 

* ; /if 


service, writes our Labour 

Editor. 

The executive throw out the 
deal by 10 votes to seven. It 
was swayed by fears a large 
number of fts members would 
be made redundant once new 
technology took a firm hold. 

Studies have shown that its 
messenger section, containing 
15,000 of its 45,000 members, 
could suffer heavily when elec- 
tronic communications replace 
paper messages. 

Its opposition, wffi be insuf- 
ficient, however, to stop a two- 
thirds majority voting in favour 
of the deal at tibe full GountaS 
of Civil Service Unions meeting 
tomorrow. Only the Society of 
Civil and PirbBc Servants, with 
11 council seats, wifi join the 
ax-seat CSU to vote, against a 
majority with 46 seats on the 
63-member council. 

Mr John Randal], CSU 
assistant general secretary, saW 
last night the derision’s signifi- 
cance was that the Government 
must take account of opposition 
anfl recognise why opposition 
existed. 

If the Government wanted to 
implement The deal in spmt: 
as well as the letter, it must 
ensure it was not Just another 
means of reducing manpower. 



No one could resist the loreoftLenew' 


■wMe ite secrete areexplored. ^ 
Awd, solragas von sendii it 
cmSttf^ayLwciffd^veaAeveri 


dayorrej&mdyonrmoney.Just cHallOO (190 in through, itfs good value at £3 pins VATfor 50 
London) and askfbr tfaoTelemessage service, words, particulady as the name andaddress 
Or sendus aides. comefree. 

Ineidiercase^ wewcm’t chargeyonfbr - For afreeleaflet, with all the details 

thecalL indbdingtelfixnnmbm, British 

I^arymess^edial^ simply got tog^; jostgcveusacalL TELECOM 







. .-irt'AT ' r-& 


: Financial -Times .Wednesday A 982 


TECHNOLOGY 


Telecom open-line on credit cards 


BY ALAN CANE 

A SPECIAL telephone which than £7 m last year because of using Taltek devices from 
can be used to cheek the the fraudulent use of plastic Unilever Computer Services 
validity of all usuaL- credit -cards- • (this page, July 23). The 

cards is to be marketed by Tiler new telephones— trans- Taltek telephone is still under- 
British Telecom. -action telephones as they are going BT validation. 

An announcement yesterday -called— are widely used in the The new BT arrangement 
that BT has satisfactorily. U.S. -and offer the best protec- opens the way for every 
evaluated and agreed to buy tion yet against credit card ■ retailer who deals with credit 
substantial numbers of the new crime. card customers to install a trans- 






telephone marks a significant . _ __ „ - . . 

step towards the “ cashless usher m the era of zero floor The BT device, developed by 
society" in the UK " limit” credit, where the value Racal-Transcom and called the 

While the use of credit cards of a transaction is limited only TCL. 100. was finally approved 
is growing rapidly— the number by the purchasers ability to pay by BT some four weeks ago. 
of Access card holders in- —or agreement with the credit It intends to buy. initially, 300 
creased by 11 per cent last card company. of the devices with deliveries 

year— credit card ' companies Late last year it looked as if starting in May. 
are seriously worried bv credit the first transaction telephones American Express has 
card crime. Access and Barclay- in the UK would be installed already indicated it will take 
card between them lost 'more by 'Dunhill, the tobacconists, the first 100 for its own 


Widespread use here would action telephone. 




The BT device, developed by 


'(!■ T \ #j£* ■•'ll;. 


..kybya., . .. 

’ N-. 

7 '‘f.'V'-'c-'. sfflS 


K0"© 





The Bacal TCL 100 credit-checking telephone now approved 
by British Telecom. 


mm 

iht tig efatnnicrfaiKcbf 

PSA TRAINING Production Engineering Research Association 
MELTON MOWBRAY LEICESTERSHIRE LE13 OPS 
Tfcl. (0664) 64133 Ext 329 or 360 


(tod l .j?t‘ ^.» i c | mo1 




retailers. The cost, is expected - ii'-inar-i £5 - f-rr ri pap! • 
to be in the region of £400-£300 pnm rpyf v v‘" '. L .\ .. *-«£-.'-r r;*i 

per terminal. '■••W ',// .■ 1 -.:7\ : *£ 

Bacal is the first of a number ■' ~ *■- \ ■£. ' 

of manufacturers developing ‘‘ '* fpADVr^-ejn 

these devices for. the UK wSB SKh" ;v : - 1- . ' v . jr"Tlvl ^77 

market to win full BT approval; \ - / ■ ■ ■*; 

but given the poteu&al size of ^. ! • omev- ■' 

the .market there is expected to ‘ ♦' 

be no shortage of suppliers, • . ’■ ’ A' 

What does a transactioii tele- * y ^- -' . p n itfl h 

phone do? Essentially, it dials . "■ •' - ^r- — 

automatically through to a card . J‘i ■/ . 

issuer’s computer centre to < \ r f • '-»■ 

establish whether a card is .. ? ‘ 

valid or not and whether the 

user’s credit limit has been tQj 

exceeded. 

It resembles a modem touch The transaction telephone sets up a. 
tone telephone and it wotta like computer centre routing the call through 
this: The buyer presents his or network to a PAD (packet assembler/dia 

her card at the pomt erf sale. enters the packet switched network. 1 

The sales clerk “swipes” the issuer’s centre; in the case of Amex i 
card through a special slot in by satellite to Arizon 

the terminal and types in the 

value of the purchase. . , _ , , 

The terminal identifies the ternunal sets up a telephone expected, 
kind of card— Amex, Access or conversation between the card In the 
whatever — and displays the 211(1 c^ Adder. validation 

name on a email screen It also _Jrher telephone worts over received 




The transaction telephone sets up a call to- the issuer's 
computer centre routing the call through the public switched 
network to a PAD (packet assembler/disassembler) where it 
enters the packet switched network. The call readies the 
issuer’s centre; in the case of Amvr it is further routed 
by satellite to Arizona. 


EDITED BY ALAN CANE 


Television-based 
inspection system 


BY GEOFFREY CHARUSH 


MARKETED by BFI Elec- 
tronics of West Molesey (01-841 
4066) and made in the U.S. is a 

television-based piece-part 

inspection system which can be 
butit- up using hardware and 
s o ft wa r e options to suit almost 
any industrial application. 

Basically, the system looks ait 
the silhouettes of parts in X and 
Y directions and from stored 
scanning fine data is able to 
make accurate ■ dimensional 
checks. For repeated checking 
of similar parts the results are 
independent of the operator and 
the system can be made fully 
automatic under program con- 
trol. " ... 


* Apart from 100 pet cent 
iispection tasks, the equipment, 
caned Videometrix, can be used 
for automatic alignment, vision 
for robotics and similar manu- 
facturing/test purposes. 

Various lenses can be supplied 
to suit the size of the measured 
objects, which can be- from 
about 0.01 inch to one inch 
across, filling -the screen. 
Accuracies to 0.00002 Inch are 
claimed. - 

If necessary the unit can be 
connected via. RS-232C .or an. 
IEEE-488 bus to external data 
handling/processing devices. 
Hard ropy records can be pro- 
vided. 


Webtec valve solution 
for hydraulic flow 


WEBTEC HYDRAULICS Of St 
Ives has developed a new valve 
which, it claims, provides a 
hydraulic solution to the prob- 
lem of keeping two cylinders, 
or motors, in dose unison when 
the loads on them are unequaL 
The value -is a proportional 
I flow divi der/conrbi n er . It 

divides a single hydraulic flow 
into two separate flows which 
will always be in. the same ratio 


to each other regardless of 
pressure differential between 
the two lines. 

What- can - you use" it for? 
Crop ■ sprayers, to aUow boom 
sections to fold -and unfold in 
unison, demountable truck 
bodies and conveyors, are three 
uses. 

Webtec can give more 
examples on 0480 63203. 


XUv 1 * - * »«■ iammzm im. iii 111 « LAlw m i 

kind of card— Amex, Access or conversation between the card In the case of Amex, once 
whatever — and displays the 211(1 221(1 holder- validation messages have been 

namp on a gnaaii screen. It The~ telephone works over received at its UK computer 

initiates a telephone call to the eiti ?c r the public switched net- centre, they are then passed 
issuer’s computer centre. There, work or BT * new ; jacket' on by satellite for verification 
computer software receives the da* 2 -network, PSS. at its main centre in Phoenix, 

data from the terminal, checks is fast > Iow cost and Arizona. 

that the card is valid, and it efficient- Bacal says that its new 

has not been stolen and that BT is already finding greater '. terminal will be compatible 

the credit limi t has not been 1122 this network, which with more advanced and 
exceeded. splits data into a number of ' sophisticated systems of dec- ; 

If all is welL the- computer 111:116 P ackets each with an tronic funds transfer how under ! 
centre- sends a message back address amLsends them through develo pment 
to the terminal to indicate the th ^- .network, by the.:. most. . British Telecom _f 01-357 
purchase can proceed together ecmmnncal route, than it 3814); Racal (0734 782158). 

with a transaction number — — : r 

which the sales clerk writes ___ __ 

do s“£e ^ in fact, no Ultrasonic test system 

different from the telephone • ™ 
validation procedures used now A MULTI-PURPOSE ultrasonic meter, loudspeaker, ultrasonic 
but it is automatic, and fast test system designed to locate transducer, directional pick-up 
Delay at the check-out is areas of corona discharge from h swmd concentrator and 
known to be one of the power lines, electrical equip- . T.”“ 
principal reasons why customers meat or leaks from air or gas- neaaphone set - 
find electronic funds transfer pressurised installations has Foster Transformers is part 
Systems unacceptable. been introduced by Foster of the test and measurement 


Alpha numeric display 
for hazardous areas 


systems unacceptable. been introduced by 

If there is a problem — the Transformers, 
card is out of date, stolen or Sontec contains 2 I 
forged for . example— the powered control emit 


ised installations has Foster Transformers is part 
introduced by Foster of the test and measurement 
rimers. . . operation of Thom EMI and 

\c contains a battery- can be contacted at Archliffe 
a control rant with - Road, Dover (0304 202620): - ; l 


A NEW two line alpha numeric 
display unit from SPL Interna- 
tional should prove particularly 
useful where mamM interven- 
tion is necessary in hazardous 
environments such as at filling 
and discharge points. ..in the 
polymer, paint , p PtmphAtn Irnl 
and pharmaceutical industries. 

As well being flame proof, 
with an armoured viewing win- 
dow, it is also hose-proof and 
so is suitable for installation 
where washing down is essen- 
tial. 1_ 

The display uses light emit- 
ting diodes, with two lines. of 
16 characters each, which; can 
be split into fields that can be 
updated independently. An on- 
board microprocessor provides 
cursor addressing. 

Galled FD 100. the display 
is driven in ASCII code on a : 20 


mA current loop at speeds up 
to 9600 baud. The simple serial 
line drive eases Interfacing to 
a computer serial output port 
and needs only minimal pro- 
gramming. SPL is on 01-636 
7833. 

New booklet 

ADDISON Tool Company of 
Acton, London,' has produced a 
16-page booklet describing its 
range of “Form-Master” tube 
end -forming machines. ; 

The description covers - the 
four basic- . models - . with 
capacities up to lOQmin O/D 
tube and its' high performance 
35mm capacity, machine. 
Detailed . specifications and 
illustrations of configurations 
'available are illustrated^ (0772- 
34511 for 'details or copies!. '' 


GENERATORS tomhbul 
WATER PUMf*S wroamks 
, MANUFACTORY) B7 . 

ATALAMTA 

PfflINEEHNO UMHEO 
Hemorth Tndina Hamorih Lsn, 

Ctwmeft Sdtw. Encpnd. 
CtwMy S3® Tate* 8812S3B 



• A i.I. 

• * 

-Sweet! 



from HP 


UP At the top end of the per- 
sonal computing market, Hew- 
lett Packard has introduced the 
HP*87, a machine with a -bask; 
price of £1,650 that has a high 
resolution 80 column text with 
graphics' display. 

The. machine employ® HP's 
“ enhanced ” basic language, 
can also use CF/M via piug-in 
module and has a user memory 
that can be increased from the 
buBc-aa 32 kilobytes to 544- kB. 
A 32k .module costs £195, 128k 
■seUs for £525. 

Resolution 

. Up says it has software solu- ( 
tions to many typical problems 
facing professionals in science; 
engineering and business. Soft- 
fare u pacs" include graphics, 
statistics. AC circuit analysis, 
and financial decisions. 

. ' Although sampler printers can 
be supplied, HP has also 
announced a two colour Mg!' 
resolution plotter for £969 tba* 
can be used wuth the new per 
sonal computer. It plots at. IF 
in/sec on an 11 x 8} inch are* 
and weighs only 12.5 lb, Cnrit 
ousty. the HP 7470 has ' boe~ 
dubbed “Sweetlips ” by the 
company. 

Shower aid 
for disabled 

AS THE Chancellor increase^ 
the mobility allowance for lb- 
disabled, free of tax, aRugb 
Warwickshire, company has r - 
notweed a shower enclosure ’ - 
improve access for people wi- 
ne ed to use a wheeWudr 0 
who have to be. carried. 

Showermed incorporates sli^ 
ing door panels so that in ti 
event of an emergency a prr 
trate body will not restr 1 
entry. Each door is wider th 
normal so that vdieelchairs tr- 
eater easily, while a spec; 
track has gently sloping no 
slip edges. The safety scree 1 
material is shatterproof. 

Full details are available 
from &iowerlux, 52, Somers' 
Road, Rugby (0788 71476). 


The Delco Freedom Battery. 
It’s truly maintenance-free. 


wm 




Pr - 

fed! «r»1 















■v --.-t- 


x . ' ; . v ' • • -. v..S 

• . ■ - • .•• • : - • ■ - - .! 

1- -ft.. A 

■ ■ ! - v . ■■ •? • i • ‘.f 

: \v 4 
, . - : '■> ^ - ■ ; ; - • v ■ • ■. ; y : „v^ | 

!■< "--.f '* &:*{] 


I •ft.’*? ; -ia;gp^ 


This is the automotive battery that’s 
built with a completely new technology 
— with wrought lead-calcium grids 
instead of the conventional type which 
is cast from lead-antimony. It’s not only 
much more durable, but it practically 
eliminates gassing and water loss, k 
never needs servicing or periodic 
checking. 

Never add water 

You never add water to the Freedom 
Batteiy. The top is heat sealed on. And 
there’s a lifetime supply of electrolyte 
sealed in. 

Easy handling 

Since dealers don't have to handle 
add, there is no electrolyte 
contamination. Mo improper activation. 
The terminals and rase stay cleaner 


than those of conventional batteries. 
And Freedom is lightweight, too. 

Location flexibility 

The Freedom Batteiy does not have to 
be in the front of the engine 
compartment So car designers have 
freedom to choose its location. 

European manufactured 

Best or all, it’s built in Europe for the 
cars of Europe. 

It’s the Delco Freedom Batteiy. A 
remarkable automotive power source 
from Delco Remy, Division of General - 
Motors. Milton Keynes, England; 
Russelsheim, W. Germany; 
Gennevilliers, France; Milan, Italy. A 
world leader in automotive electrical 
systems since 1896. 


Delco Remy 








18 , 1882 . 


Financial Tiines Wednesday March" 17 1982 



rj - • 







: Chemical on w 
International Bankin g: * 

Emerging markets. Expanding 
technologies. Development on 
a global scale.Today,the rhythms of 
commerce are worldwide. And 
Chemical sets a rapid new tempo. 

Were proud of the traditions 
that have put Chemical at the 
forefront of international business. 


And prouder still of the innovations 
that have kept us there Ou r 
ChemLink7BankLink*network isthe 
largest balance reporting and cash 
management system in the world. 
And we've just added a new 
ChemLink/Cedel module for Euro- 
bond information and transactions. 



We don't stop at being first— or 
best. Our international specialists 
are constantly advancing the quality 
of our worldwide services. Look 
into the matchless performance of 
our Energy and Minerals Group, 
Foreign Exchange Advisory Service, 
Chemco International Leasing, 
or any of our wide-ranging interna- 
tional capabilities. Our new ideas 
mean new opportunities for you. 

What Chemical has done 
yesterday, what we're doing today 
and what we're working toward 
for tomorrow are all part of the 
tradition of giving you the very best 
banking service. It's a tradition that 
improves with innovation. 

CkemicalBanc 


I 








._iW- 


~&r.4!ffr ink% 


Financial Times Wednesday March^ l7 1982 


FT COMMERCIAL LAW REPORTS 


Fidelity insurance for acts of non-employees 

EXCESS LIFE ASSURANCE CO LTD v FIREMANS INSURANCE CO OF NEWARK 


GARDENS TODAY 


Planting without tears or puddles 


Queen’s Bench Division: Mr Justice Webster: Marti 11 1982 


by robin lane fox 


. WHERE n fidelity insurance 
policy in a New. York form 
.covers the' dishonest acts of 
the assured's “ sales repre- 
sentatives and general .agents,” 
thos e words should be con- 
strued in accordance with 
New York law when applied 
to English facts; and the 
assured is covered for the 
dishonest acts of persons who 
come wi thin the meaning of 
the words so construed, even 
though they may be the 
employees or agents of 
another. 

Mr Justice Webster so held 
when giving judgment for the 
plaintiff, Excess Life Assurance 
Company (Excess) in. its 
claim to be indemnified by the 
defendant insurers. Firemans 
Insurance Company Ltd. of New- 
ark, N for loss suffered 
through the dishonest or 
fraudulent act of persons who, 
by agreement, sold life 
insurance policies on behalf of 
Excess. 

+ *■ * 

The New York stockbrokers’ 
Blanket Bond policy standard 
form No 14 provides: “The 
underwriter ... is ... to 
indemnify . . . the Insured for: 
Fidelity Loss through any dis- 
honest or fraudulent act of any 
of the employees . . . The limit 
of liability is $10m.” 

The relevant rider to the 
policy provided. “ The total 
liability of the underwriter . . . 
with respect to any loss . . . 
caused by . . . sales representa- 
tives and general agents is 


RACING 

BY DOMINIC WIGAN 


THE IRISH bid for Chelten- 
ham's most valuable prizes of 
the season continues with 
remarkable strength on this 
second day of the Festival meet- 
ing, and it is by no means im- 
possible that only the Coral 
Golden Hurdle final, which does 
not have an Irish runner, will 
fall to an English stable. 

In the £30.000 added Oneen 
Mother Champion Chase 
Ireland’s 25-1 winner of a year 
ago, Dmmeora. is backed up 
by Chmrnlla, The Mighty Mac 
and, quite possibly. Run With 

Pride. In the onlv marginally 
less well endowed Sun Alliance 
Chase, Drumlnrean and Fenian 
Gold represent the Emerald 
Isle. 

The presence of Richdee, a 
fourth priced favourite who 
seeks a nap-hand in the Sun 
Alliance Chase, will ensure that 
Drumlargan goes off at reason- 
able odds, and he strikes me 
as a particularly good win and 


limited to . . . Sim, it being 
understood however; that such 
liability shall be a part of and 
not in addition to tbe amount 
of the bond.” . 

HIS ' LORDSHIP ■ 'said that 
between 1868 and 1974 Excess 
sold life insurance through a 
group of natural and legal- 
persons who called themselves 
insurance brokers. Excess made 
“ agency appointment ” agree- 
ments with members of the 
group under which those 
members placed Hfe insurance 
policies on fts behalf in return 
for commission. Unknown to 
Excess the group paid the pre- 
miums themselves on sham 
policies. 

Payment of the premiums 
began to lapse in 1974; and by 
the end of that year the 

companies in the group were 
wound up. As a result of the 
group's dishonest or fraudulent 
act Excess lost the difference 
between commissions paid and 
premi ums received. 

Excess was insured for the 
dishonest or fraudulent acts of 
its employees under a fidelity 
Blanket Bond on standard form 
No. 14. The policy contained a 
rider, or endorsement, which 
provided that the insurers’ 
liability, was limited in respect 
of any loss caused by “sales 
representatives and general 
agents." 

In tbe present action Excess - 
sought to recover from the 
Insurers the loss suffered as a 
result of tbe dishonest or 
fraudulent act of the group- 


place bet Although beaten on 
merit by Neville Crump’s six- 
year-old in Ascot's Reynolds- 
town Chase, Drumlargan has a 
fair chance of reversing that 
placing on far more searching, 
ground, despite meeting his con- 
queror on 4 lbs worse terms for 
a three lengths beating. 

Drumgora gave Ireland her 
14th Champion Chase success 
in the last 23 years when he 
outstayed the odds-on Anaglogs 
Daughter in glue-like conditions i 
last season. He should not | 
trouble News King on their re- 1 
cent running in Newbury’s 
Game Spirit Handicap. 

Angelo Salvfni, who was none 
tnn clever at a couple of hurdles 
when initiating a doable at 
Huntingdon last month, is sure ; 
to be a popular order among ; 
English backers for the opening 
Son Alliance Novices Hurdle. 

CHELTENHAM 
2.15— Direct Call*" 

250 — Drumlargan*** 

350 — Drumgora 
4.05— Bristol Blue* 

440 — Door Step 
5JL5 — TemplemiUs ■ 


"Employees” was defined In 
the policy as incl u ding 
employees as ordinarily under- 
stood. The group’s members 
were not Excess employees. 
However, Excess contended that 
the effect of “such liability shall 
be a part of ami not in addition 
to tbe amount of tbe bond” in 
tiie rider, was to extend the 
cover to sales representatives 
and genera! agents who were 
not employed by Excess. 

* 

The insurers contended that 
the rider did not extend the 
cover, but merely limited their 
liability with regard to Excess’s 
employee sales representatives 
or general agents. 

The bond was subject to the 
law of the State of New York. 
By that law, unless the words of 
an insurance contract were 
ambiguous, no extrinsic evidence 
was admissible for the purpose 
of construing 

It was necessary to look at 
the bond as a whole, and in 
particular at the parts relevant 
■to tbe construction of the rider. 
The effect of the rider, properly 
construed, was to limit the 
insurers’ liability for sales 
representatives and general 
agents who were employees of 
. Excess. It did not extend their 
liability to sales representatives 
and general agents who were not 
employees of Excess. 

Excess claimed to be entitled 
to have the bond rectified so as 
to give tbe rider tbe extending 
effect far which it contended. 

By tbe law of the State of New 
York, rectification would be 
ordered where the parties had, 
by mutual mistake, failed to set 
out their mutual intention. 
Extrinsic evidence was admis- 
sible as to the mutual intention 
of the parties, and convincing 
proof was required. 

His Lordship was satisfied on 
the evidence that it was the 
mutual intention of the parties 
to the bond that it should have 
the effect for which Excess con- 
tended. Excess was entitled to 
have the rider rectified by add- 
ing the words so that it had an 
extending effect as distinct from 
merely limiting liability. 

The issue then was, what was 
the proper construction of "loss 
through or caused by the dis- 
honest or fraudulent act of sales 
representatives or general 
agents?" 

.After considering the 
evidence as to the use of “sales 
representatives” and “general 
agents" in the life insurance 
industry in the U.S. generally, 
and its meaning under the law 
of the State of New York, his 
Lordship found that “ sales 
representative ” in the rider 
meant a natural person who was 
a representative or agent of 
another legal person (whether 
I natural or not), engaged to sell 


something ■ on behalf of that 
person, whether employed by 
him or not 

“General agent" meant a 
legal person, natural or other- 
wise Casually but not invariably 
an independent contractor), 
engaged to sell or market 
insurance on behalf of an 
insurance company; he stood 
“ on the insurance company’s 
side of the fence" as distinct 
from that of the policy holder, 
and often, but not invariably, 
bad an obligation to recruit and 
train salesmen; be was some- 
times an agent for more than 
one insurance company, though 
rarely for more than two; and 
he might, but not necessarily, 
have exclusive rights over a 
particular territory. 

Having regard to that con- 
struction of the bond and the 
rider, Mr Phillips, for Excess, 
submitted that the group mem- 
bers were Excess's general 
agents, and that individual 
employees within tbe group 
were sales representatives. 

Mr Hamilton, for the 
insurers, relied on the fact that 
the group members were 
insurance brokers and that, as 
a matte* 1 of law, insurance 
brokers were always agents of 
the assured and not of the 
insurer. 


The position on the authorities 
was that, if a person acted on 
behalf of two parties to the same 
transaction without their fully- 
informed consent, he took the 
risk of being in breach of his 
duties to either or both of the 
parties should a conflict of 
interests arise. Consequently, 
even if the group were agents in 
some respects for the holders of 
the sham policies, that would not 
preclude their acting as agents 
for Excess, or from deciding that 
they were “on Excess’s side of 
the fence." 

There was nothing in English 
law and practice which was in- 
consistent with the group’s being 
Excess’s agents, even if they 
described themselves as brokers. 
They sold insurance on Excess's 
behalf, directly or through sales- 
men, to the “policy holders.” 
They were thus “general agents” 
within the meaning of the bond, 
and the individuals they 
employed who introduced “policy 
holders" to Excess, were 
Excess’s “sales representatives." 

Excess was entitled to be in- 
demnified by tbe insurers in 
accordance with the terms and 
limitations of the policy. 

For Excess: Nicholas Phillips 
QC V. V. Feeder , and Victor 
Lyon (Freshfields). 

For the insurers: Adrian Ham- 
ilton QC and John Thomas (Bar- 
low, L yde & Gilbert). 

By Rachel Davies 
Barr i s t e r 


DURING THE. next fortnight, 
gardeners wifi he weighing -up 
their losses, creeping out of 
their winter shelters and won- 
dering how best to plant in their 
aany new. gaps. ... 

Most of us make Hfe store 
difficult by starting to garden 
too late. My usual advice to 
those who want less bother from 
the garden is to pack in the 
work oq it between mid- 
February and mid-March. This 
year the rains have put paid to 
that • 

My neighbour is already sow- 
ing early peas, having dug his 
entire plot at the age of 75 as 
if the snow and floods had never 
existed. I am stiB waiting for a 
dry, calm spell, in which lean 
spray my weedkillers- every- 
where, a short cut whach he 
ignores. If you are just dusting 
down the mower and wondering 
about the weeds on a half-acre 
plot, you are already, in ray 
view, too late. 

Late planters, however, have 
had the best of it this year. 
Recent seasons have caught 
them out with dry tote springs 
and early summers. Last year, 
heavy snow paid a brief return 
visit in mid-AprfL This time, 
the weather has already been so 
hard that the delayers cannot 
possibly lose. 

Last autumn I was planning a 
broad sweep of cistus, my 
favourite hebe called hulkeana 
among a big drift of silver 
leaves. Postponing delivery 
until the spring, I found that 
the entire planting had died on 
the nurseryman’s ground at his 
expense, sparing me a very 
heavy loss. 

Good replacements are now 
coming up from Cornwall and 
the south-west for these 
moderately hardy shrubs, the 
backbone of counties' gardens. 
By April, they will be back in 
force in the garden centres, so 
long as you can pay for con- 
venience and impulse buying. 


- . Hunting then becomes an 
- important art for gardeners in 
early spring- This year, the 
rains have made the soil very 
difficult. If you want to plant 
into the back of a flower bed, 
remember that you can walk on 
wet soil without damage if you 
lay a plank across its surface. 
The plank spreads your weight 
so that it does not pack the soil 
underneath into a lump. 

On day or wet soils, planks 
are the spring planter’s best 
friend. If you trample on heavy 
soil at this season, you risk all 
ynflnnPT of trouble if the 
weather then turns dry. 

Armed with your planks, you 
should also avoid treading earth 
or weeds into paths or lawns. 
Before yon build up .a big heap 
of rubbish, you should always 
put down a sack or polythene 
sheet so that you do not transfer 
the problems from the flower 
beds on to their surrounds. 

Wherever you drop earth on 
a path or grass, you win encour- 
age weeds. The white rootr nf 
bindweed will root wherever 
they fall, so please remember 
this simple check on the many 
dips between bed and barrow. 

Take a sheet, then, some 
planks, a day off work and con- 
sider yourself nearly ready to 
plant Many gardeners still 
make an awful mess of this 
basic task. They plant too 
closely and too quickly and do 
not know how to please a root 

Two principles apply any- 
where. Fit the size of the hole 
to the root not the root to tbe 
hole. Always plant firmly 
against the wind and rain which 
.will loosen your new arrival. 
Boots will grow, but seldom 
move from their original posi- 
tions. 

Trees and hedges seem to 
bring out the worst in us nil. 
Very few gardeners prepare the 
sites properly' and they then 
complain about slow progress. 
You have only id watch a young 


yew hedge to see the rewards of 
feeding arid preparation. ~ Tot 
a new hedge, you should dig 
a trench at least 3. ft wide. and 
fork rotted manure into- the 
second spit of. soil before 
planting: • ' ' 

This second spk is the depth 
of a spade’s blade, exp wed 
when you turn over a similar 
depth above it. You should 
stagger your line of yew a foot 
and a half apart, no closer. 

Try to top dress the surface 
area 'of its roots with two ounces 
of nitrate of soda to each yard, 
applied in spring. The toots 
may have run aidte widely into 
your surrounding lawn, so yon 
must scatter the soda arouni 
If you spend enough time and 
money you will find that yew. 
the prince of garden hedges, 
grows a comfortable 6 in each 
year and excels that horrible 
cypress Leylandii. the resort of 
gardeners in a hurry; 

Similar care is relished by 
beech, thorn, box and especially 
thuva which flourishes in deep 
soil I hate to see a thin rib- 
bon of hedfifing plants dapped 
into grass with only a six-inch 
clearance between their stems 
and the lawn. They starve, dry 
out and draw a mass of weeds 
into their base. ‘ You cannot 
plant a hedge in a day, least 
of all if vou want auick growth. 

Nor, I think, can you move 
much more quickly with trees. 
There is a classic error here. 
You read my advice, hire a 
digger and cut some dm> and 
wide holes, over 6 ft in diameter, 
for trees which tbe nnr^rvman 
is planning tn deliver. The rain 
then ponrs down and leaves in 
irremovable pond at the level 
of the subsoil. 

I remember just such a fate 
in a joint venture, planting 
chestnuts and white beans near 
Luton, on which a hard pressed 
contractor had jumped my 
arrival date and left me with 


30 trees and 3 ft «f water ip 

their holes. " -' • -- r Vi- 

Depth, however, u ne cessary 
for planting a tree property^ 
should arrive with wide <jm& 
long roots If yea hems-ator 
supplier an^ uvoWKaB. boifBa 
offers. They must" not be beat 
or tangled. You should hold 
"them above the bottom of your 
hole and spread them out 
across its diameter slipping a 
few spadefuls of soil under- * 
neath and then anchoring them 
as you progress. Have some 
rich compost to hand which you 
can replace in stages treading 
it firmly round the lower roots 1 
pattern. Avoid air-pockets at- 
this leveL 

. When the main roots are 
covered, build up. to soil level, . 
but if the ground is heavy r no . 
longer tread the upper earth too 
hard. The tree will be held 
Ann at the root and drainage 
on top becomes more Important - 

Only if you are planting 
small alpines or border plants 
should you deliberately fill tbe 
hole with water before you 
begin. In a small hole, the water 
will drain quite quickly. In a 
dry spring, this “puddling” will 
make up for many cans of water: 
after the event. 

Finally, he sure yon know the 
limits of peat. Everybody tries - 
to flog it to you, but It has no 
value as a food. It is a spongy 
and acid base for a compost 
which would suit rhododen- " 
drons. Its sole use is to lighten 
and open heavy soils so that you 
can work them freely and the 
roots will breathe. If you plant 
during spring in peat only, your 
plants win (fay out and go Short 
of food. 

Mix peat with manure, loam 
and other fertilisers and you 
will do the garden no harm. 
Peat is not a cure for many i 
problems and planters coped.' 
for centuries without its sup- 
posed advantages. 


BBC ”1 


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So pick up the /phone and 

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we'll send you a copy 
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' now with 
Enterprise Zone 
benefits 






6.40- 7.55 am Open University 
(UHF only). 9.05 For Schools, 
Colleges. I0-00 You and Me. 
10.15 For Schools, Colleges. 12L30 
pm News After Noon. LOO" 
Pebble Mill at One. 1.45 Chigley. 
2D1-3.00 For Schools, Colleges; 
3.53 Regional News for England 
(except London). 3J55 Play 
School. 4J20 Mighty Mouse. 425 
Jackanory. 4.40 Take Hart 5.00 
John Craven's Newsround. 5.10 
Grandad, starring Clive Dunn. 
5.35 Ivor the Engine. 

5.40 News. 

6.00 Regional News Maga- 
zines. 

. 625 Nationwide. 

6-50 Rolf Harris Cartoon Time 
(London and South East 
only). 

7,20 Wednesday Film: “Mas- 
querade," starring Cliff- 
Robertson, Jack Hawkins 
and Marisa Mell. 

9.00 Party Political Broadcast 
by the Labour Party. ' 

9.05 News. 

9.30 Sportsnight: European 

Football: Highlights from 
tonight's European action; 
Boxing: Carlos Hernandez 
(champion) v Cornelius . 
Boza Edwards (chal- 
lenger) for the Junior 
Light-weight Champion- 
ship of Europe. 

10.58 News Headlines. 

1L00 Parkinson. 


All IBA Regions as London 

except at the following times: 

ANGLIA 

1JS pm Anglia Nows- 2 J(S Trapper 
John. 6.16 Happy Days. 6.00 About - 
Anglia. 12.15 ' am The Big Qu nation. 

BORDER 

120 pm Bonier News. 2-45 Brocken. 
5.15 Radio. 6.00 Looks round Wednes- 
day. 12.15 am News Summary. 

CENTRAL 

120 pm Central News. 2.45 The Last 
of Summer. 5.15 Radio. 6.00 Cross- 
roads. 6.25 Central News. 12.15 am 
Replay: " Dragnet.’*. 

CHANNEL 

120 pm Channel Lunchtime News, 
What’s on Where and Weather. 2.46 
Trapper John. &-20 Crossroads. 6.00 
Channel Report. 620 Barley's Bird. 
9.00 Life in Franca. 10-33 Chennai Late 
News. 12.15 Election ‘82: The Guernsey 


(S; Stereophonic br oadcast 

RADIO 1 

6.00 sm As Radio 2. 7.00 Mike Read. 
9JM Simon Bates. 11-30 Dave Lee 
Travis. 2.00 pm Paul Burnett. 3.30 Andy 
Peebles. 5.00 Pater Powell. 7.00 Radio 1 
Mailbag. 8.00 David Jensen. 10.00-12.00 
John Peel (S). 

VHF RADIOS 1 AND 2—5.00 am With 
Radio 2. 8.00 pm Alan Qeff with Dance 
Bond Days. 8.30 The New Swingle 
Singers (S). 9 -QO The Folk Entertainers 
(S). 9.30 Sounds of the Sun (S). 9J55 

Sports Desk. 10.00 With Radio 1. 12.00. 
5.00 With Radio 2. 

RADIO 2 

5.00 am Ray Moore (3). 7.30 Terry 
Wogan (S). 10.00 Jimmy Young (S). 
TLOO Gloria Hurmiford .(S). 2.00 pm 
Don Durbridge, Including Racing from 
Cheltenham (S). 230 A Party Political 
Broadcast by the Labour Party. 4.00 
David Homilton (S). BM Newa. Sport. 


TELEVISION 


Chris Dunkley: Tonight’s Choice 

Not a bad night for revaluing your George VI British 
Colonials; or sticking those photographs into that album. If you 
must watch television Masquerade on BBC-1 is a 1965 British film 
with Jack Hawkins playing secret agent Colonel Drexel abducting 
the heir to an Arab state. Not the worst spy movie ever made. 
Chronicle on BBC-2 is written and directed by Ivor Noel Hume, 
who made his name excavating Williamsburg, Virginia. He sub- 
sequently turned his attention to an earlier site which has much 
to teQ about the “dark ages'* of the English colonial expansion 
into America. 

The e vening’s most entertaining programme is almost sure 
to be rrVs Minder 

If that is not to your taste and you.refuse to go out to dinner 
-you will simply .have to listen to some promising bookish pro- 
grammes on radio. VN: The Great Enchanter is a critical assess- 
ment of Vladimir Nabokov on Radio 3, Have Yon Read Mrs Trol- 
lope? recalls the publication of- Fanny Trollope’s scathing book 
about the Americans - in X83Z on Radio 4, and among the - items 
In Kaleidoscope is my own review of Alistair Cooke’s “Master- 
pieces.” I did say it was a good night to go out. 


LONDON 



640-7.55 am Open University. 
10.20 Gharbar. 

1L00 Play ScbooL 
2.00 pm Racing from Chelten- 
ham. 

430 The Spirit of Carnival. 
5J.0 Personal Identity. ' 
f5.40 Laurel and Hardy in “ Me 
and My Pal.”' 

6.40 The Water Margin. 

EL45 The Mak in g of Man kind 


Election for Deputies foMowed by 
Epilogue and News and Weather in 
French. 

GRAMPIAN 

925 am First Thing. 1-20 pm North 
. News. 2.45 The Great Depression. 5.15 
Private Benjamin. 6.00 North Tonight. 
12.15 am North Hsadlinea. 

GRANADA 

12-30 pm Mr and Mrs. 1.20 Granada 
Reports. 1.30 Exchange Flags. 2.00 Take 
the High Road. 2SO The Sound of 
Kenneth McKoller. 245 The Great De- 
pression. 6X0 This Is Your Right. 6X6 
Crossroads. 6.30 Granada Reporta. 

10.35 "A Severed Head.”. starring Lee 
Remlcfc and Richard Attenborough. 

HTV 

1.20 pm HTV News. 2.45 Fantasy 
Island. 3^5 Tha History Makers (The 
Crusades: Saints and Sinners). 5.10 
Ask Oscar! 5.20 Crossroads. 6.00 HTV 
News. 6L30 Sing a Song with Ma. 

10.36 HTV News. 


7.35 News Summary. 

7.40 The Master flam**. 

8.10 Chronicle. 

9.00 Party Political Broadcast 
‘ by the Labour Party." 

9-05 M*A*S*H. 

9.30 Nancy Astor. 

10-20 Out of Court 
10 JO Newsnight 
1L35 Racing .iron Cheltenham 
(highlights). 


HTV CYMRU/WALES— As HTV WEST 
except: 12JJCL12.10 pm Ty Bach Twt. 
4.15 Mr Marlin. 4.45 Y Rheilffordd 
Gudd. 5.10-5.20 Dick Tracy. 6J» Y 
Dydd. 6.15*30 Report Weiss. 

SCOTTISH 

1-20 pm Scottish News. 1JO A Full 
Life— Lord Montague of Beaulieu. 2.46 
Tha Great Oppression (Germany — 
From Weimar 'to Hitler). 5.10 Tales of 
Crime. 520 Crossroads. 6.00 Scotland 
Today. 6.20 Action Line. 6.30 Sounds 
Gaelic. 12.15 am Late Call. 

TSW 

1-20 pm TSW News Headlines. 2.45 
Trapper John. 5.15 Gua Honeybun’s 
Magic Birthdays. 520 Crossroads. 6.00 
Today ; South West. 6 JO A Day lit 
the Ufa — of Beryl Cook. 10.37 TSW 
Lata News. 12.15 am Postscript. 1220 
South West Weather. 

TVS 

120 pm TVS News. 2 AS The Great 
Depression: America. 5.15 Radio. 520 


RADIO 


CJ» John Dunn (S). 8.00 Football — 
Boxing Special. 10.00 You've Got to 
be Joking, with Cardew Robinson. 
10-38 Be My Guest, says Margaret 
Howard. 11.00 Brian Matthew with 
Round Midnight. 1.00 am Truckers’ 
Hour (S). 240-5.00 You end the Night 
and the Music (S). 

RADIO 3 

6.55 am Weather. 7.00 Nows. 7.05 
Your Midweek Choice (S). 8.00 News. 

8.05 Your Midweek Choice (continued) 
(S). 3.00 News. 8.05 This Week's Com- 
poser Rameau (SI. 10.00 Ulster 
Orchestra (SJ. 11.30 Bernadette Graevy, 
song recital (S). 12.05 pm New I rich 
Chamber Orchestra (S). 1.00 Newa. 

1.06 Concert Hali (S). 2.00 Music 

Weakly (S). 2.50 Tchaikovsky, con- 
cert (S). 320 Howard Ferguson; Per- 


formance of his Piano Sonata Op.B (S). 
4-00 Choral Evensong (S). 4.55 Haws. 
5.00 Mainly for Pleasure (5). 7.00 

V.N.: The Great Enchanter: Denis 
Doncghoe presents a critical assess- 
ment of writer Vladimir Nabokov. 8.00 
Barahar Conducts Beethoven: Concert 
from tha Royal Festival Hall, part 1 (S). 
8-40 Six Continents. 9.00 Concert. 
part-2i Beethoven (S). 10.00 Discords 
of Good Humour. 11.00 News. 11.06- 
11.15 Gerard Victory (S). . 

RADIO 4 

_ 600 am News Briefing. 6.10 Farming 
Today. 5.25 Shipping Forecast. 6.30 
Today. 8.33 Yesterday in Parliament. 
8.57 WBBthar, travel. 9.00 News, 3.05 
Midweek: Henry Kelly fS). 10.00 News. 
10.02 Gsrdsnere’ Question Time visits 


9.30 am Schools Programmes, 
12.00 Windfalls. 12JL0 pm Rato- 
bow. 1&30 Movie Memories. LOO 
News, plus Financial Times 
Index. 1.20 Thames News with 
Robin Houston. L30 Take the 
High Road. 2.00 After Noon Plus 
presented by Mary Parkinson end 
Kay Avilal .2.45 The Six Million - 
Dollar Man. 3.45 Definition. 4J5 
Dr Snuggles. 4J20 Animals In 
Action. 4.45 Murphy’s Mob. 5.U 
Mr Merlin. 

5,45 News. 

6-00 Thames News 
6.25 Help! with, Viv Taylor 
- ■ 

6.35 Crossroads* 

LOO T&is Is Your Life: 
Eamonn Andrews has a 
. surprise for another tin- 
- - - suspecting guest 

. 7.30 Coronation Street 

8-00 Starburst 

9.00 Party Political Broadcast 
' by lhe Labour Party, 

9.05 Minder, starring Dennis 
Waterman and George 
Cole. 

1045 News. 

10.35 “Damnation Alley," star- 

ring Jan-Michael Vincent 

George Peppard and. 
Dominique S arnia. 

12.15 am Close: Sit Up and 
Listen with Dr Artfhnfw 
Storr. 

f Indicates programme 
in black and white 


Coast to Coast. 6.00 Cos at to Coe* 

. (oonbiiued). 12.16 am Campeny, ' 

TYNE TEES 

9.20 un Tha Good Word." 9-25 North - 
East News. 1-20 pm Non* East Nmw.. 
1.25 Whore tha Jobo are. 2.45 Tho Lava 
Boat. 6.15 Private Beniamin. 6.00 North 
East News. 6.02 Crossroads. 825 
Northern Life. 10.36 North East Naws- 
12.15 am Free Church Congress. 

ULSTER 

1.20 pm Lunchtime. 2.45 The Great 
Depression (Germany: from Weimar to 
H iller). 4.13 Ulster News. 5.15 Radio. 
5.30 Good Evening Ulster. 6.00 Good 
Evening Ulnar. 8.00 Tha Enwrajnar. 
10-34 Ulster Weather. 12.18 am Nows 
at Bedtime. 

YORKSHIRE 

1 JO pm Calendar News. 246 Trapper 
John. 5.15 Private Benjamin. SM 
Calendar (Emlay Moor and Belmont 
editions). ■ 


Bedfordshire. 10.30 Dally Sendee. 10.45. 
Morning Story. 11.00 News. - ilLO* - 
Baker's Dozen. 12.00 News. 12A2 pm 
You and Youra. 1227 It Makes 
Laugh. 12.56 Weather; travel, pre- 
gramma news. 1.00 The World ar One. 
136 A Party Political Broadcast by 
die Labour Party. 1.40 Tha Archoo- 
1.55 Shipping Forecast. 2.00 Nawi. 
2.02 Woman’s Hour Visits India. 3J0 
News. 3.02 Afternoon Theatre. 3JS0 
Smith Invades the Capital. 4.00 Uttta 
Tlch— Giant of the Halls (Sh 4.45 
Story Time. 5JW PM: News Matnollio-. 

' 5-50 Shipping Forecast 5 .56 Weather, 
programme news. 6.00 Newt including 
Financial Report. 6.30 My Word t (S)^" 
7JM News.' 7.06 The Ambers. 72Q 
Checkpoint. 7.45 Have You Reed Mrs 
Jtollope? 8.30 Lenar From A Turf Bog. 
8.45 File on 4. 9.3Q KaleEdoMOp*. 9* 
Weather. 10.00 The WorW Tonight 
10J0 Detective. 11.00 A Book ar Bad* 
time. 11.15 The Financial Worfd 
Tonight. 11.30 Today In Pa rite mem- 
1200 Newt.- • • 


I 


I 


r.M'fr iiiTMF ' 


■ raBW*- — 
1 caraa?t , »“ l '9 £ 

| Gurney Stre et, f* 


; Cleveland tarty Council, (toney House. 
Dimnh Delated IS! 1QJ 


* 


1 Cleveland County Council, Gurney House, Middlesbrough, Cleveland TS1 1QI 
Cleveland County comprises the boroughs of Hartlepool, langbaurgh, Middlesbrough 
Ref n* | andStoctton-on-Tees. 


INVEST IN 50,000 
BETTER TOMORROWS! 

50,000 people in the United Kingdom suffer from progressively 
paralysing MULTIPLE SCLEROSIS— the cause and cure of which are 
still unknown— HELP US BRING THEM RELIEF AND HOPE. 

We need your donation to enable us to continue our work for the 
CARE and WELFARE OF MULTIPLE SCLEROSIS sufferere and to 
continue our commitment to find the cause and cure of MULTIPLE 
SCLEROSIS through MEDICAL RESEARCH. 

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286 Monster Road, Fulham, London SW6 6BE 












15 


1 

— i^EmantiaL 33mes JIhmday_Marcii_18_X982. * 


Financial 'Rmes Wednesday March 17 1982 

• - *;*?•*•*' ' *—& -■ 



f 


REVIEW BY THE CHAIRMAN, MR A.M. HODGE 

To be presented at the Annual General Meeting on 23rd March 1982. 


U.K. New Premiums up 52%. Investment Linked Bonds Perform Well. Pensions Business Increased. Stronger Valuation Basis. 


UNITED KINGDOM AND 
REPUBLIC OF IRELAND 

Assurance Business 

Although inflation in fheUJK. was lower 
in 1981 than in 1980 it still remains fr ighteningly 
high. The economic recession is still with us 
and the number of unemployed has reached 
an all time peak. Given these conditions it is 
especially creditable thatthe year's results 

premiums (single and annual) on new 
business inthe UK/were 52% higher at 
£635m. In IheRepublic of Ireland thetotal 
premiums on newbusiness increased by 147% 
to I£L6.3m. due largely to the continuing 
success of our Guaranteed Growth and 
Income Bonds. 

Our decision to offer investment linked 
contracts continues to be amply justified and 
our bondholders have good reason to be 
. pleased. This is shown by the following table, 
wMch compares the changes in the xinit 
prices of the various InvestaentBondfunds 
overfoe period from inception on 29th 
Octoberl979tol5foNovemberl981,wiihfoe 
corresponding changes in the appropriate 
market indices. 


Change in Unit Change in 
Price Appropriate 

Market Index 

FUND 

% 

% 

Managed 

+40.9 

— 

Property 

+35.6 

- 

Equity 

+59.1 

+30.8 

International 

+565 . 

- +27.7 

Fixed Interest 

+147 

+10.5 

Cash 

+20.8 

- 


Theinvestmentlirikedfundswemanage 
stood at over £42m.at 15th November 198L 


Valuation Regulations 

After muaidiscusaonbetween the 
. authori tie s, the actuarial profesaon and the 

life Offices Associations, the Insurance 
Compames Regulations 1981 (wboseprime 
. porposeislo make theUJC confonn-with the 
EJE.Cs first life assurance directive) have at 
last been published and they come into force 
. during 1982. 

Until now the authorities have exercised 
financial control over life assurance companies 
through the requirement that we publish 
details of the amounts of our business andthe 
basis of its valuation. The principle of freedom 
with publicity has served well since it was 
instituted in 1870. At the next valuation, for the 
fji-gf time, we shall have to ensure that the value 
we put on our liabilities is no less tiian if 
calculated on a minimum prescribed basis in 
addition to which we must add a margin for 
solvency-the total of course being covered by 
our assets. Wemust also ensure thatour assets 
ai^lyandlarge^mthesamecmiencyasthe 
liabilitiesfoeytopport. 

These are, in principle, prudent measures 
and nnes we have always taken so that we do 
-notfeelrestridedbytheirintrodudion. Until 
now, however; reliance has been placed by the 
authorities on the actuarial profession rather 
than on regulations. This has resulted in the 
twin advantages of a closer supervision anda 
better return to the policyholders. Aftodble 
arrangementneedbeno lessresponsibleand 
canavoidtoo smaflasolvencyinaiginm some 
cases andone that is too large in others. 
Wfflhoutthis freedomthere is the danger that 
inflexible supervision mightplace so much 
emphasis ontheform of protection for policy- 
holders that the scope to earn bonuses on their 
behalf becomes unduly restricted. I hope that 
the authors crffutureEJE.CL directives will 
prefer a harmonisation dosertothe 
professional freedom that has been permitted 
-inffiP i IK- and thathasworkedsowelL 


Pensions Business 

Our pensions business has again 
increased The total premi ums for insured 
contracts were £133m. compared wifo 5321m. 
last year This is a particularly good result 
considering the unusually large number of 
redundances, the lower levels of salary 
increases andthe continuing trend towards 
managedfonds. 

There was a satisfactory increase too in 
our managed funds, a facility we have now 
extended to the Republic of Ireland Total 
deposits into managedfimclswere£51m. 
compared with £44m. lastyear; andthefunds 
tofalled-£354m. atl5thNovember!98L 

The terms for schemes contracted out of 
foe UK State Scheme which will apply from 
Aprill983 have been reviewed bythe Govern- 
ment Actuary. These terms indudefoe 
reduction in National Insurance Contribution 
to allowfor thefadthatthe employer with a 
contracted outscheme provides part of the 
pension which would otherwise be provided 
by&eStafoThereductionis periodically 
changed to refled both the amount of the 
corresponding pension and also its assessed 
costto the employer; Thefoct that theterms 
can periodically be adjusted helps to ensure 
neutrality between those contracted in and 
those contraded out The choice between 
contracting in and contracting out should 
therefore depend mainly on foe achievement 
of good industrial relations and a dminis trative 
simplidty. 

During foe comingyearwewin.be 
extending our services jby organising pre- 
retirementcoursesfor employees approaching 
retirement and by providing secretarial and 
accounting supportto trustees. We have 
recently installed alargenewIBM computer 
consxderablymore powerful than foe machine 
it replaces and thefirst of its kind in Scotland. 
WewfflbemaMng increasing use of its extra 
power to enhance foe administration of our 
groupschemes. 

Investment 

Duringfoeysarwe invested £107m. in 
fixed interest securities, BOlm. in ordinary 
shares and £43m. in property. We have 
continued to invest in property and most of this 
has been through development; as we expect 
tins to provide a higher yield than is generally 
available by purchasing completed buildings 
on which the yields are now low in 
comparison with other investments. Thetotal 
value of our properties in foe UK. and 
Republic of Ireland is £603m. 

There is no doubt thatfoere is nowa 
need for an upsurge in capital expenditure in 
the UK. There must be many who would be 
prepared to borrow money to finance such 
projects were it not for foe fact that foe current 
highinterestrates, their size justified bythe 
need to compensate foe lender forloss of 
capital, effectively require foe bonowerto 
repay substantial amounts of foe loan with 
each interest payment Until it becomes 
practical for companies to issue index-linked 
debentures it must remain difficult or 
impossible in present conditions to finance 
capital projects this way. Hence companies 
have Me option but to finance projects by 
raising equity capitaL We have ourselves 
invested innew companies by way of such 
concerns as Melville Street Investments. At 
least as long as such companies exist there 
needbeno lackof equityfinancefor 
worfowhfieprqjeds. 

Standard Life 

The largest mutual life assurance company 
mtheEuropeanCommximty. 

HeadOffice:3 GeorgeStreet,Edinbixrgti. 


CANADA 

New Business 

Activity infifeassurance and pensions 
business in Canada has slowed down in recent 
months for various reasons. The economy has 
turned down and amajor recession grips foe 
country. The Government have not yet made 
known their intentions regarding State 
Pensions andfoeresulting uncertainty has 
hindered employers from introducing or 
malting charges to pensions schemes. The 
proposed budget announced late last year 
aims amongst other things to introduce anew 
taxonfoeholdecs of certain life assurance 
policies which could have a profound effect on 
future business. In spite of foe onsetof these 
difficulties the tofed new premiums under our 
assurancebusiness were 7.9% higher at 
$25Jm. Twenty-dghtnew insured group 
contracts were written lastyear compared with 
twenty-one in foe previous year. We secured 
nineteen new managed funds, foe same 
number as in foe previous year and thetotal 
investment in this area is now$L5 billion. 

Investment 

To cover ourr liabilities we require to hold 
foe major part of our assets in Canada in fixed 
interest securities ofwhich our holding atl5fo 
November 1981 was $1138m. We had $32Qm. in 
ordinary shares and $292m. in properly. Over 
foe lastfew years we have increased our stake 
in property and this has proved a rewarding 
investmentfoe appreciation of thetotal 
portfolio over last year alonebdng nearly 40%. 

VALUATION AND BONUS 

Thevaluation basis as set out in foe 
actuarial report remains unchanged from last 
year except forfoe use of newmortality tables 
for annuities, coupled, in Canada, with a slight 
increase in foerate of interest This change 
results in an even stronger basis than last 
year’s. The surplus earnings of foe Company 
have benefited from a further increase in foe 
return on investments. Our bonus declaration 
reflects foe continuing favourable investment 
conditions. We have increased our rates of 
reversionary bonus and amounts ofterminal 
bonus in foe United Kingdom and foeRepublic 
of Ireland and have also dedaredforfoefirst 
time a terminal bonus in respect of Canadian 
policies under foe reversionary bonus series. 

The declared rates of bonus are high by 
any Standard and reflectfoe exceptional 
returns in monetary terms that accrue during 
inflationary conditions. It is therefore necessary 
to stress that current rates of bonus could not 
necessarily be maintained should investment 
yields subside in future to more normal levels. 

GENERAL 

Lord Wemyss, on reaching the age limit; 
will be retiring atthis year’s Annual General 
Meeting. Itwas good to have onfoe Board 
someone whose deep and enduring interest in 
and love of Scotland is epitomized in the great 
workhe has doneforTheNationalTrustfor 
Scotland, and we wish him well in his 
retirement 

I should like on behalf of foe directors 
and foe policyholders to express our thanks to 
foe General Managei; George Gwilt, foe senior 
executives and all our staff both here and 
overseas for the very fineresults which they 
have achieved in a difficult year: I should also 
Hketo thankfoe directors for the very 
important partfoeyplay in the fortunes ofthe 
Company. This is foe last Annual General 
Meeting atwhich I shall take foe chair It has 
been a privilege to have been Chairman of this 
great Company for foe past five years and I 
have every confidence that in foe future foe 
Company will continue to go from strength to 
strength under foe guidance of Robert Smith 
our present Deputy Chairman who succeeds me 





Financial Times Wednesday March 1? 1983 



THE MANAGEMENT PAGE 


Dainichi: a robot maker trying to 
match growth with originality 


BY CHARLES SMITH 


ONE of the reasons why 
Japanese industry Is so good at 
moving into adventurous new 
areas is that most of the risks 
of doing so are shouldered by 
huge companies which can 
afford to wail years to get their 
money back. 

That at least is what the 
pundits say. A man who believes 
in a very different formula for 
success is Tnshia Kohno. owner, 
president and chief designer of 
the industrial robot manufac- 
turer, Dainichi Kiko. 

Kohno, who started his own 
company at 23. went bankrupt 
at 27, but is now presiding over 
a business which has recently 
been achieving an annual 
growth rate of over 100 per 
cent, says bigness is not neces- 
sarily a help — at least in Japan 
— when it conies to doing some- 
thing radically new. 

All of the half-dozen or so 
large Japanese companies that 
have moved into the fast-grow- 
ing robot business in the past 
few years either started os 
licencees oF Western manufac- 
turers like Unimate or Tralphn 
or began by producing “ dead 
copies " of Western originals 
that were just different enough 
to escape prosecution under the 
patent laws, says Kohno. 













*TSrf 


Axilla 


Bra no Badoric 

Toihio Kohno: saw the Husky robot launch his company as a specialist in robot production. 


orthodox business career, Kohno 


Japan's lack of originality dropped out of university and 
with industrial robots is one set up his own design company 


Kiko concentrated on designing the standards of the mountain- If Kohno has a worry about 
and building tyre manufacturing ous prefecture of Yamanashi- the future of his company it 
machinery for Yokohama ken where most of its produo is not about the possibility that 
Rub!»:r Company and on produc- tion and design shops have been growth might slacken or the 
ing industrial transfer machines located since m id-1980. Turn- competition get too hot but 
for a number of other clients. over last year amounted to rather that the character of 
The application of computer roughly Y2.5hn (about £0m) Dainichi will change when the 


use of trading companies. “ The 
reason we are selling abroad,” 
says Kohno, “is because foreign 
companies came and asked to 
buy from us, or asked for 
licences to make our products.” 

Dainichi Kiko’s first produc- 
tion and sales tie-up outside 
Japan was with a Swedish 
partner, Aritmos AB, in 1978. 
This was followed by a similar 
link in Holland and, in autumn 
1981, by the signing of an agree- 
ment with the UK Sykes 
Group to establish a joint 
venture production and market- 
ing company whose marketing 
territory will cover most of 
western Europe. 

Dainichi plans an eventual 
total of nine overseas joint ven- 
tures covering a territory which 
will include North America and 
Australasia as well as East and 
West Europe. When that total 
is achieved Kohno may stop ex- 
porting from Japan altogether 
and concentrate on design work. 
His long term ambition is to 
turn his Japanese company into 
a • robot “think-tank" which 
will turn out a continuous series 
of new ideas to be used by in- 
ternational members of the 
Dainichi Kiko '* family." ' 

If Kohno has a worry about 
tbe future of his company it 


reason. Kohno claims, why the 
industry has had a negligible 
record to date .as an exporter. 


with friends in the Shinjuku 
business district of Tokyo. 


company 


despite the huge and growing snovvre( j un der with orders and 


for a number of other clients, 
soon The application of computer 
and control sp stems to conventional 


design office hut, as Kohno 
admits today, no-one knew any- 
thing about finance, personnel 


Kohno thinking about other 
forms of automated handling 
equipment when, in 1974. 


success of rohots in Japan itself. ra pjdlv expanded into a 30-man transfer machines had started 
Kohno s own company, however, design office hut, as Kohno Kohno thinking about other 
claims a 60-,fl per cent export admits today, no-one knew any- forms of automated handling 
ratio. It does not employ a about finance, personnel equipment^ when, in 1974. 

single salesman and nas never nianaffeinent company law or Drlnichi Kiko got the chance to 
used Japanese trading com- anv " 0 f ot ^ er essentials design and build what Kohno 
panies to sell in overseas ne ‘ e dcd Tor running even a small claims was and is. the world's 
markets, exploit ins instead its t0 Inedilim si2ed business. The iar - csL roboL 
own designs and its small size ,^5^ was ] ass 0 f control by the 
tn find out what the user f 0un der-president and debts Wnrflinrliila 

really wants, says Kohno. amounting to Y30m (£60,000). W 0FIIlWllII6 
The 41-year-old Kohno, who , . . . . 

todav does nothing except Kohno a father advised him The jj US ky Robot, which cost 
design and build robots, did not *° commit suicide in order to ySOm (£160.000) to make and 
start life as a robot-maker. As a demonstrate his sense of only one of which was ever pro- 
student in one of Tokyo's responsibility to the creditors, duced, is a device for fixing 
specialised industrial universi- but tbe son thought otherwise, concrete ventilation panels onto 
tioc Knhnn uteri tn cnpnrl hit He was bdek in business within the roofs of road tunnels. It was 


management, company law or DrJnichi Kiko got the chance to 
any of the other essentials design and build what Kohno 
needed Tor running even a small claims was. and is. the world s 
to medium sized business. The ,arscsl robot 
result was loss of control by the 

founder-president and debts lV#\v+liarl*ilA 
amounting to Y30m (£60,000). Vt UFIOtt liilC 

Knhno'a father advised him The Husky Robot, which cost 
to commit suicide in order to YSOm (£160.000) to make and 
demonstrate his sense of on iy one of which was ever pro- 
responsibility to the creditors, duced, is a device for fixing 


sales should pass YlOfan long 
before 1985. .when Kohno 
expects a more “leisurely" 


unmanned 


passing 


assembly shop where robots watershed is a loss of flexi- 


ties Kohno used to spend his 
time designing pipe systems for 
petrochemical complexes (in the 
days before computer-aided 
design). This ** hobby ” earned 
him about ten times as much as 
the salary he would have been 
paid as a young graduate engi- 
neer in a first-class Japanese 
company. It also meant 
that, instead of starting an 


He was back in business within the roofs of road tunnels. It was 
three months of the disaster ordered by a construction com- 
and within three years had paid pany for use in a 4,000 metTe 
off all his debts and was able to tunnel under construction in 
add “limited" to his -company's central Japan, but tunnel 


name. The company which desi, 
emerged from the ashes .of Hus 
Kohno's first failure was wcn 
Dainichi Kiko. Kl 

For the first two years after pr ic 
its foundation in 1971, Dainichi com 


tnen design changed after the first 
ol Husky had been built and there 
was wcre no mo re orders. 

Kohno recalls that the sales 


will make robots. The new 
plant will stand on 12.000 sq m 
of floor space (three times as 
much as the present “manned" 
assembly shop) and will have 
cost about Yl.Sbn to build — or 
50 per cent more than Dainichi's 
entire 1981 turnover. Not sur- 
prisingly! In view of this, the 
company admits to being fairly 
short of cash. 

Since becoming aware of 
Dainichi's progress, the Japan- 


ese banks (specifically Mil- 
subishi and Sumitomo) have for tion successfully. 
the past year been more willing 1 


price of the Husky when the to lend money — though even 


company delivered 


today designing a new robot is 


The 1981 Companies Act 
will revolutionise your 
Report & Accounts. 
Will you be ready? 


Under the new law, you will soon have to revwwthe 
form and content of your company report To' comply 
with the EEC Fourth Directive it must alter dramatically, 

\ with new prescribed formats for profit and loss accounts 
( and balance sheets, and new disclosures in both the 
1 notes and the Directors Report 
V So to help you get ready (and feel more comfortable 
, about the time limits imposed). Bumip, Mathiesonhave 
produced the third edition of specimen report and ■ 

* accounts from Blank p.l.c. 

\ It digests all the implications of the 1961 . 

Companies Act and can be used as a model company 
report for any publicly-quoted business. And in 
addition to coveting die implications of all current 
accounting standards. 

Blank pJ.c. contains The Stock 
Exchange Listing Agreement 

* and The City Code with 

■ commentary. 

It’s all a good illustration 
of the practical guidance in 
the preparation of company 
reports by the City's leading 
printer. Fill in the coupon 
and you’ll certainly 

■ beieady. . 


TteBnmip, Matiueson & Company LUL, 

Crano House, Lavington Sfartf, London SEl ONX, jiugujiu. 

Please send me Copyfcapies of Blank pJx. 

Report & Accounts 

Price £7.50 UJC/EB.75 overseas find. p&pl.Psymentinust 
accompany order Please allow 28 days for delivery. 

MriMrs/Ms 

Company ~ — — — 

Position Held — 

Ad 


January 1975 was 30 per cent 'a lot easier than raising a bank 
more than the value of loan, says Kohno. 

Dainichi’s entire sales in the Apart from banking he has 
previous year so that, even as another important relationship 


a one-off job, the contract was 
worthwhile. More important, 
the Husky launched Dainichi as 
a specialist in robot production, 


with the Mitsubishi group. 
Mitsubishi Corporation, the 
group’s trading arm (and the 
largest Japanese general trading 


whereas almost all the other company) is the main db'stribu- 
cora panies in the robot business tor of Dadnichi Kiko robots in 
have their fingers in many Japan's domestic market. 


different pies. 

Today, with a capacity of 50 
machines per month and a 130- 
man workforce. Dainichi Kiko 
is offering no fewer than 70 
different robot models,. although 
12 main types account for most 
of its turnover. Actual com- 
ponents for many of the 12 
types are manufactured to 


despite the fact that two other 
Mitsubishi group companies. 
Mitsubishi Electric and 
Mitsubishi Heavy Industries, are 
also in the robot business. i 
Kohno clearly values the help | 
he has received from Mitsubishi 
in breaking into the Japanese 
home market where big com- 
panies tend to have an over- 


Kohno’s specifications by sub- "helming advantage over small 
contracting companies (some of ones when it comes - to selling, 
which may be many times Outside Japan, however, 
larger than Dainichi itself) but Dainichi has made virtually no 
lhc key responsibility for design — — — — — — — 

work is in the hands of a group ■ — ■ ■ 

of roughly half a dezm special- Tn fbp ‘ 

ists led by Kohno himself. . 

Kohno claims that the com- HITACHI 

puter software of his robots is 

TT.S. $30,000,000 4 3 A% Co 

larger company whose basic NOUCE OF FREE tiist 

expertise lies in the manufac- A3 

ture of numerical control ADJUSTMENT of ( 

deuces for machine tools. ‘OTe, Hitachi Maxell, Ltd,, her 

Apart from technical advance- free distribution of shares of its 
ment Dainichi Kiko prides itself 31st March, 198: 

on being able to come up with £ har j® 

designs to suit a customer’s 

SreaniStion lf nSfohl'mke 

rrs i,bjs nsfis? S,768 - S0 ier *** 

exchange.” says Kohno. j 

Despite its range of robot 1 

types and the level of its tech- j 

Ideal expertise Dainichi Kiko is M arih 17, 1982 
still a tiny company— even by - 


/ 7 • / 

MM 

computers 


Block Arrow House, •: ■' 

Chandos Read, London NTV10 6NT j 


WORD PROCESSORS 
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Hayv.aias Heath 
(0444) 4144S4 


To the Holders of 

HITACHI MAXELL, LTD. 

TT.S. §30,000,000 4 % % Convertible Bonds Due 1997 

NOTICE OF FREE DISTRIBUTION OF SHARES 
AND 

ADJUSTMENT OF CONVERSION PRICE 

“We, Hitachi Maxell, Ltd,, hereby notify that, as a result of a 
free distribution of shares of its common stock to shareholders of 
record as of 31st March, 1982, Japan time, at tbe rate of 
1 share for each 5 shares held, the Conversion price of the 
captioned Bonds will be adjusted pursuant to Condition 5, para- 
graph (D), sub-paragraph (i) of the Terms and Conditions of 
the Bonds under Trust Deed dated 8th March, 1982 from Yen 
3,322 to Yen 2,768,30 per share, effective as from. 1st April, 1982, 
Japan 

HITACHI MAXELL, LTD. 

1-88, TJshitori 1-chome 

Iharaki (Sty, Osaka, Japan 

March 17, 1982 


ken where most of its produc- is not about the possibility that 
tion and design shops have been growth might slacken or the 
located since m id-1980. Turn- competition get too hot but 
over last year amounted to rather that the character of 
roughly Y2.5hn (about £0m) Dainichi will change when the 
but this will more than double number of employees passes 
in 19S2, to around Y5.5bn and 300- Kohno believes that this 


represents the watershed be- 
tween a small company that can 
be run effectively by one man 


30 per cent annual growth rate, and the medium-sized concern 
The company's next jump in that needs a formal manage- 
production capacity will come ment structure and a division 
in June this year with the open- of roles. 


bility and the growth of *' sec- 
tionalism” in a company’s in- 
ternal organisation that in turn 
inhibits response to external 
events and reduces creativity. 

Kohno is determined to keep 
the freshness of approabn 
which has marked Dainichi 
Kiko’s first years when the 
company graduates from small 
to medium, but he admits that 
only 0.1 per cent of his prede- 
cessors have made the transi- 


EDITED BY CHRISTOPHBRJtORENZ 


BOARDROOM BALLADS 


DAMASCUS ROAD 


rm not exactly, same would say. 
Full of warmth and cheer; 

Vvc used, my ctboiw on the icay 
To building my career; 

I*bc earned 0 reputation as 
A cold fish and ascetic. 

And, jchafccer else I aw. 

It wasn't sympathetic^ 

Around the company I’m known 
For proiccss with the hatchet; 

And when it came to cutting back, 
So one else could match it, 

Vvc had some terete hed siwma-so's 
Almost on their knees 
'"When telling them they had to go 
To help the c ompany^squeeze. 

It seemed a pardonable si«. 

Seeing men recumbent. 

Uaiil the chairman called me in 
And told me I'm redundant; 

He listed to ike letter 
All the reasons I'd deployed 
For irhy it 1 could be better 
If I joined the unemployed. 


The u'elbknown dialctic 
I’d so frequently rehearsed, 

Made me just as apoplectic 
When the action aw Termed; \ 
And I /elf mysel/ succumbing 
To the self-same fatalistic 
Recognition of becoming 
Just an 0Ut-0/-tcorfc statistic. 

It made the old grepmatter tick 
To lire through the sensation 
Of toting the arithmetic 
That brings do ten high til /lotion; 
And running all the pictures back 
In quiet retrospective 
Gore handing all the rest the sack 
A different perspective. 

I’d never thought it through before . 
The curioiw riedurtipn 
That people don't amount to more 
Than factors of production: 

Maybe tite politicians 
Would repent of what they ask us 
If they'd shared my special vision 
On my journey to Damascus. 


Next week: Headhunting 


BUSINESS PROBLEMS 


Caretaker’s 

cottage 

I belong to a Resident's 
Association and live in one of 
the flats of a converted 
mansion. The flats are let on 
long leases (130 years) to the 
residents but the freehold is 
owned * by the Association, 
which is a limited company. 
For some years, a caretaker 
has been employed in a 
cottage attached to the man- 
sion, hut what with the 
difficulty of finding suitable 
employees and inflation, it has 
been resolved that the care- 
taker’s flat should be sold, 
the money accruing to the 
Association. 

What is our position with 
regard to taxation, in 
particular, CGT. It is a non- 
profit (non-trading) organisa- 
tion, hat we appear to be 
subject to Corporation Tax at 
a reduced rate of 42 per cent 
In a recent case (Batey v 
Wakefield (1980) STS), 
exemption from CGT was 
successfully claimed against 
the Inland Revenue on the 


ground that the caretaker’s 
cottage, although a separate 
dwelling, was pan of the 
owner’s dwelling- and there- 
fore not subject to CGT on 
disposal, bnt this was a 
private dwelling and might 
not apply to our case. If we 
are subject to CGT. how do 
we go about establishing 
initial cost, and can we avail 
ourselves of the £3,000 
exemption afforded to private 
persons? 

The lowest rate of corporation 
tax was reduced from 42 per 
cent to 40 per cent from April 
1979. However, companies’ 
chargeable gains are chargeable 
to corporation tax at 52 per cent 
on 15/26ths so your company’s 
gain on the sale of the cottage 
will attract tax at an effective 
rate of 30 per cent, with no 
exemption or relief. The cost is 
a question of fact We do not 
understand your difficulty in 
establishing the figure, unless 
you mean that the relevant 
records have been inadvertently 
destroyed. The solicitor who 
acts in the sale can doubtless 
guide you on the tax aspects as 
well as the general law. 


BY OUR LEGAL STATE 


Rent Act and 


lettings 


I Tet a furnished flat which 
has a fair rent certificate. If a 
I re-let to a company for use ’ ' 
by a staff employee, must 7 
notify the rent officer of any 
increase in the rent? I have- - , 
beard that in letting to A . 
company, tbe rent officer has - 
no further control over the 
property. Is this correct? . 

You do not need to notify 
the rent officer if you re-let on : 
a letting which is 'not within., 
the protection of the Rent Act. ‘ 
Most lettings to a company will 1 
he within the protection. of the r 
Rent Act so far as rent Units 
are concerned, but outside 
the protection -as to security of 
tenure. You should therefore'-’ 
relet above the registered rent 
without having a new assess- 
ment of fair rent. 

No legal responsibility can be 
accepted by the Financial Times / 
for the answers given fn these 
eo/umns. All. Inquiries will be 
answered by post os soon os - 
possible. ■ . . 


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Financial “Times Wednesday March if '1982 


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17 


t 


THE ARTS 


Television 


If more means better 


by CHRIS DUNKLEY 


f There !s much disagreement 
over the effects of the television 
boom which is due to occur in 
the next few years. Will We all 
be offered a wider choice, a 
. richer diet, programmes more 
l accurately suited to our indi- 
5 vidual tastes— or will more 
- mean worse? Present evidence 
’ suggests that the programme 
* makers, or perhaps the adminis- 
trators, have already started 
approaching the whole business 
of expansion from the wrong' 
direction by attempting to re- 
define and segment the audience 
instead of refining, and separat- 
ing the subject matter of pro- 
grammes. But the trouble is 
that so far viewers know much 
more about the structure and 
the technology of the changes 
which will lake place behind the 
screen than those that wUI 
happen on it. -- . 

We know we are to have 
Channel 4 in November, two 
breakfast services next year 
{how interesting, incidentally, 
that the BBC chose~to r declare 
its plans for pre-empting ITVs 
breakfast show on Budget Day 
when the announcement would 
so obviously be overshadowed) 
and sooner rather than later the 
first two satellite channels also 
to bo run by the BBC, thanks 
tnmnfv. i -believe, to the -fact 
Cfcar corporate plan rang is easier 
inside the BBC- monolith than 
inside the ITV federation so 
that the BBC was ready with a 
scheme when the Government 
needed one quickly to justfy 
(he expansion of the satellite 
industry and all the associated 
technology. ITV’s reported fury 
at being “left out" seems mis- 
placed since there will presum- 
ably be plenty more satellite 
channels when they are ready 
for them. 

Of course it may be that 
very few viewers will prove 
willing or able to spend £300 or 
' £400 on their own dish aerial 
and converter to'pull the satel- 
lite signals out of the sky. 
Arguably satellite transmissions 
don't make milch sense in a 
country which even in its 
major urban areas lacks exten- 
sive cabling so that there is 
little chance of using commu- 
nity antennae for the local dis*. . 
persal of satellite signals via 
cable. But - then the industry' 
is already keyed up for another 
government announcement 
quite soon about the expansion 
of cable which, nowadays, 
means fibre-optic cable and con- 
sequently the prospect of not 
one or two more channels hut 
dozens or scores or even hun- 
dreds more. 

Whatever the precise 'details, 
it seems clear that within a few 
years most" British viewers will 
have six -channels available to 
them rather than three as at 
present, and not very long after 
that 10 or maybe a dozen, with 
a steady increase for at least 
some time thereafter. But will 
that mean better" programmes? - 

Not necessarily, of course, 
but we should surely dismiss as 
unwontedly gloomy the facile . 


judgment that more means 
worse. Unless you are willing 
to argue that an increase in 
book publishing, art galleries, 
and concert halls means worse 
literature, worse painting and 
worse music, 1 do not see why 
you should maintain that more 
television' channels - means 
worse programmes. 

No doubt a large proportion 
of the new material will be 
mediocre or even bad, as in any 
area 1 of endeavour. In its early 
days printing produced virtually 
nothing but religious material; 
the expansion and development 
of the medium to the point 
where it could produce “War 
and Peace " also meant the pro- 
duction of “Fanny Hill.” The 
small proportion of .excellent 
literature available to us today 
sits upon a mountain of Beanos 
and Playboys and thrillers. It 
would surely be surprising if 
the expansion of television were 
very different.. Talent is clearly 
'not in infin ite supply, and'in an 
"enlarged field -rt may-tak& the 
viewer longer to hunt down the 
good programmes, bat that is 
not the same as saying that 
there will actually be fewer of 
them or that the average stan- 
dard will fall. 

It has been fashionable for 
some time to point to U.S. tele- 
vision as an example of more 
meaning worse but it seems to 
me a hard argument to sustain 
now that the expansion via 
cable and satellite has begun 
and Americans are ' acquiring 
such services as the all-news 
.channel and the Home Box 
Office satellite. 

It is that sort of specialisation 
by subject matter which it i$ to 
be hoped British programme 
makers will aim for. To extend 
the print analogy, there seems 
no reason why the development 
of general interest magazines, 
then (say) specialist motoring 
magazines, branching eventually 
into vintage motoring, motor 
racing and car maintenance 
magazines shouldn't have - close 
parallels on television. (Though 
you "won’t. be able" to lay tele- 
vision open at the right place 
while you get to work on the 
engine.) 

Ominously- at • present — 
-though admittedly the boom has 
yet . .to . begin — broadcasters 
seem preoccupied with splitting 
the audience rather than the 
subject matter into smaller 
divisions, and there is a crucial 
difference. Their present ap- 
proach brings to mind the 
Venetians of the 17th century 
who paid special regard to the 
Jews,, providing facilities . exclu- 
sively tailored to their needs, 
or supposedly so. ■ The result 
has -been one of / the -most 
sinister ' concepts to come 
slithering down the centuries: 
the ghetto. In a fit of similarly 
benevolently^ intended- dtscrimi- • 
nation television is making 
special arrangements for teen- 
agers, the old, and — -if Channel 
4 has its way — women and 
blacks. 

If you suggest to those who 



Greenwich 


The Assassin 


by B. A. YOUNG 




Nicky Picasso, one of the presenters of ‘ Riverside * 


promote these ideas that the 
notion of fundamental differ- 
ences between groups of people 
arbitrarily divided by age, sex 
or race comes very close to the 
ideas sustaining Nazism and 
apartheid they are outraged. It 
is fashionable to welcome such 
programmes as The Oxford 
Road Show and Riverside as 
being jolly good for teenagers— 
for all the world as though 
“ teenagers ” were entirely dif- 
ferent from ordinary people. 

Sure enough when you look 
such programmes you find that 
without exception they cater to 
a stereotype: a teenager is 
someone who is interested in 
loud rhythmical electronic 
music, pink hair, detailed dis- 
cussions about the personnel of 
the latest band, and occasional 
protests about the iniquities of 
the police. 

- That is slightly, though only 
slightly, unfair to Riverside 
which is also developing a 
special interest in what might 
be called movement— dance and 
mime— and in video as a form 
of expression in its own right 
These two constituents and the 
visual aspects of the musical 
numbers (lasers, smoke and 
lighting as well as the look of 
the participants) are far stronger 
than the “ music ” which is 
tedious, repetitive, and in verbal 
terms makes the Beatles and 
-Soiling . Stones, sound like 
Shakespeare and Tolstoy rolled 
into one. 

The point-. is that bn the one 
hand there are plenty of 43-year- 
oTds interested in movement and 
29-year-olds interested in video 


who will not find these subjects 
covered elsewhere on television 
for older people but who may 
very well be repelled by the 
teenage ghetto quality of River- 
side's ethos. On the other hand 
there are tens of thousands of 
teenagers in Britain who 
wouldn’t give you tuppence for 
an electric guitar or pink hair 
but who breed dogs, study for 
all sorts of qualifications, play 
bridge and argue about Marx 
and Friedman - who won’t find 
anything at all for them in this 
supposedly “ teenage ’’ series. 

Though it may be done in the 
name of greater concern for all,- 
the business of splitting the 
audience up according to pre- 
conceived social criteria is 
actually dreadfully condescend- 
ing. The idea that if you are an 
old age pensioner you must be 
doddering, deaf and dim and 
need to be spoken to ve-ry 
slow-ly may be kindly intended," 
but it is also insulting to the 
sprightly OAP while being off- 
putting, to the deaf I&year-old 
who wilT nataraUy"feel "that the 
programme is not for him. 

The danger is that far too 
much of the extra capacity on 
the new channels will be filled 
with programmes aimed at 
socially defined "target groups 
of ever greater exclusivity— 
“ The Series For Lesbian Social 
Workers living In Hull ! " — 
when it 'Is dfar that the best 
programmes have always been 
made by producers who are 
fantastically keen-, on some 
particular subject and not in 
the least concerned with -the 
ege, sex or colour of" 'the 
viewers. ' 


Hugo, in Jean-Paul Sartre’s 
The Assassin (otherwise Lea 
Mains Sales) is a thinking man 
in a wartime political under- 
ground movement, as was his 
creator. Hugo, however, is 
given more active work than 
Sartre ever was: he has to kill 
his leader, because the particu- 
lar cabal he mixes with have 
decided that the leader’s tac- 
tics are wrong. The play begins 
with a short scene after the 
killi ng has taken place; Hugo 
has made it look like a crime 
passionel and (Sartre ■ being a 
Frenchman, though the action 
takes place ih an imaginary 
Central European state) has 
only served two years in prison. 

Action, I said, but It is 
argument that gives the play Its 
quality. Twice Hugo is on the 
point of shooting Hoederer, his. 
leader, and twice there is a 
sudden interruption that -pre- 
vents him: Later there is a 
Jong scene that appears to be 
leading up to the assassination 

Festival -Hall 


but ends with Hugo's sur- 
rendering his weapon to his in- 
tended victim. As a thriller, 
the play is weakened by lack 
of convincing de tail. How did 
Olga get into and out of 
Hoederer’s headquarters so 
easily? Why does no one ever 
listen to conversations through 
doors? The story is presented . 
in the manner of a comic strip. 

But the intellectual talks is 
good.- Hugo, played by James 
Simmons, is the discontented 
son of a prosperous family who 
has become an active revolu- 
tionary to cure himself of self- 
contempt. Mr Simmons gives 
us a lifelike portrait of the 
typical “ bourgeois anarchist ” 
of our own day; all his talk 
about duty to the Party is 
romance, and the duty that has 
been laid on him is soon re- 
placed by a personal admiration 
for Hoederer that stymies him. 

Hoederer is a more practical 
revolutionary, a hard-working 


office-man who is perfectly pre- 
pared to break Parly rules when 
he thinks the country will be 
the better for it. Edward 
Woodward, plumper than we 
usually see him and less well- 
spoken, suggests a Trade Union 
chief; and as Sartre has given 
him all the best lines he 
emerges as a likeable figure, as 
long as you overlook the cause 
be works for. The immediate 
cause, it must be said, is a good 
one, for we are in 1943, and he 
wants to keep his country safe 
from both the Germans and the 
Russians. Perhaps he will end 
up as a kind of Tito. 

Hugo is equipped with a 
beautiful wife, Jessica (Shirley 
Cassedy),' an unlikely encum- 
brance in the circumstances, but 
handy For Sartre, as she can bo 
at the other end of Hugo's 
worries, and she can let herself 
be fondled by Hoederer at just 
the right moment to provoke 
Hugo into murder. " She is 


consciously frigid, and Miss 
Cassedy has made her so,, in 
spite of the beautiful turnout 
always available to her at Party 
Headquarters 

Frank Hauser, the director, 
has kept the discusrions as keen 
ns the actual plotting, and when 
Sartre hns built up tension. Mr 
Hauser plays it to the full. 
Besides Hugo, Jessica and 
Hoederer, none of the characters 
is written with much depth, 
Olga, whom I mentioned just 
now, is tautly played by Michele 
Dotrice as a revolutionary who 
thinks nothing of throwing a 
bomb through a window, but 
neither she nor Sartre convinced 
me of the likelihood of an 
understanding between her and 
Hugo. The other characters— 
gunmen, plotters or party 
loaders, arc usrfitl props, but 
there is little in any of them to 
get hold of — though I did 
admire Stephen MacDonald’s 
cool Prince Paul. 


Zukerman/Neikrug 

by DAVID MURRAY 


There was some virtuoso fizz 
in P-inchas Zukerman's second 
encore on Monday, and it drew 
the first whole-hearted audience 
response of the evening. That 
was the fault of Mr Zukerman 
and his partner — no, his accom- 
panist: partner is what he ought 
to have been — Marc Neikmg r 
certainly not of the three 
Brahms sonatas which com- 
prised their short programme. 

Whether Zukerman was play- 
ing violin or viola (we have 
Brahms' last, two sonatas for 
the soprano instrument, and the 
viola arrangement of the second 
clarinet sonata) the piano was 
deferential and backward. That 
was disappointing even in the 

Sadler's Wells 


sonata with viola, where in a 
large hall the piano is more or 
less constrained to hold back 
(as it oeedn't when matched 
with the original clarinet — a 
good reason for confining the 
viola version to small balls). 

In the violin sonatas the weak- 
ness was seriously damaging; 
Brahms gave the piano a full- 
bloodedly equal role, and it was 
evident from the pallid opening 
of the A major Sonata thalNeik- 
rug would decline it 

If Neikrug was short breathed 
and shy with the rich piano 
parts, Zukerman offered little 
positive compensation. For a 
violinist with hds sovereign 
technique mod reliable elegance 


of phrasing, he was strangely 
noncommittal about these lovely, 
late-blooming pieces. Bar by 
bar. he ruminated through the 
music with careful respect; but 
it is all symphonically wrought 
on its modest scale, and the per- 
formances made scarcely any- 
thing of the larger musical argu- 
ments or even of broad dramatic 
contrasts. If playing every move- 
ment of the sunny A major 
work at a species of Andante 
was an experiment, it was mis- 
guided: warmth and life drained 
away, leaving the Sonata a polite 
shadow of itself. 

Zukerman’s way with the 
viola is balm to the ear, and 
that was a guarantee of pleasure 


in the op 120 no 2 Sonata — 
though its relatively simple 
structure was given a very low 
profile, and it seemed to go 
nowhere in particular. In the 
D minor Violin Sonata, at last, 
there was some show of spirit 
(in the pianist's case it took the 
form of rudely ignoring Brahm's 
indications for dynamics and 
attack), a degree of nerrous 
energy behind what was still a 
spidery sketch. Newcomers to 
all this music might easily have 
concluded that it is too domestic 
to translate to the concert plat- 
form. It isn't, of course: and 
it was very rum - to have a 
violinst of Zukerman's powers 
give such an impression of it. 


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Ghost Dances 

by CLEMENT CRISP 


Barbican Hall 


Serkin by DOMINIC GILL 


The LSO'and Claudio Abbado 
ore at present engaged on a 
major project to record all of 
the Mozart piano concertos with 
Rudolf Serkin: so it was a 
natural choice to invite him io 
play Mozart at the Barbican 
during the orchestra’s first 
month of residence there. It 
would be unwise to prejudge a 
record series on the evidence 
of a single concert: and I 
imagine that Serkin’s perform- 
ances on disc, if they match liis 
finest Mozart performances of 
the past, will have more lift 
and sparkle, and more concen- 


trated focus, than his -pair of 
concertos did on Monday night. 

Neither one had the powerful 
centre, nor carried the same 
spiritual charge, of Serkin' s 
best Mozart. In his B flat 
concerto K595 there were no 
surprising illuminations — and 
in its larghetto especially, few 
tracts of the peculiar, rarefied 
lyrical poise which the music 
invokes: only a thoroughly 
agreeable, intelligently turned 
and sympathetic plainness. In 
lesser hands that might have 
been considered a greater 
virtue. I liked the finale best: 


tripping jauntily, at an easy 
allegro, turning aside from the 
strongest gusts of exuberance, 
lightweight and genial. His 
account of the rarely-heard 
early C major concerto K246 was 
genial too, and had a quicker, 
keener momentum. Perhaps if, 
in the manner of an SPNM open 
rehearsal, we could have heard 
K595 for a second time straight 
away, the spirit by then would 
have become as warm as the 
fingers. 

Abbado and the LSO have 
begun their Ml-Mozart pro- 
gramme with a low-keyed, 


austere -and rather impressive 
reading of the Masonic Funeral 
Music K477; and they ended 
with the Jupiter symphony^-* 
well-made rather than inspired 
account that lacked the mark 
of truly dose and careful work- 
ing (at no point comparable 
with, for example, the Fhii- 
harmouia’s Beethoven or 
Schubert under Sanderling last 
week). Only in the last half 
of the finale, after the exposi- 
tion repeat, did all the disparate 
strands come together deci- 
sively. and take off with any- 
thing approaching vehemence. 


It is all very well to make a 
ballet “for the innocent people 
of South America who, from the 
time of the Spanish Conquests, 
have been continuously deva- 
stated by political oppression,” 
but— as Christopher Bruce's 
Ghost Dances showed on 
Monday "at their first London 
showing— quite another matter 
to make it affect us,. I do not 
■ doubt for one moment the in- 
tensity of Mr Bruce's outrage 
at a continent’s suffering. I do 
however question the wisdom of 
such generalised emoting as 
the excuse for choreography. 

When dealing with the parti- 
cular, or focusing a vast theme 
by means of very specific cir- 
cumstance (as in Ancient Voices 
of Children or For those w ho 
die as cattle), Mr Bruce can 
prove his point with a conviction 
that . is dynamic as well as 
emotional! " Bui’ Ghost Dances, 
for all Its griefs and horror 
and pity, reties upon repetition 
of the idea .of .eight couples (the 
“ innocent people " of the dedi- 
cation) being variously mown 
down by three skull-masked 
ghost dancers who, unsurpris- 
ingly, represent death. Mr 
Bruce has provided a backdrop 
showing the Andes’, the accom- 
paniment comprises South 
American folk-songs for guitar 
and those breathy flutes with- 
out which no South American 
film/nature study/protest Is 


complete- And burning sincer- 
ity, alas, is not enough. 

The evening had begun with 
Mr Bruce in religious mood — 
the .austere Dancing Day he 
made initially for students at 
the Rambert Academy, and 
which provides so sure a dance 
parallel for Gustav Holst’s 
settings of mediaeval carols and 
sacred songs. It was well if not 
gaudily danced, as was Richard 
Alston’s Rainbow Ripples, that 
dazzling response to a spoken 
text recorded, re-recorded, 
played against itself and sud- 
denly falling into unison, which 
is exactly what the dances do, 
too. (The excellent South Bank 
Show on Sunday night in which 
the choreographer spoke about 
bis work, made plain many of 
the felicities and ingenuities of 
this appealing piece.) 

And as a neat joke, Sally 
Owen’s Unsuitable Case was 
also on view. This is a surreal 
tape-loop farce fending with its 
beginning yet again) about a 
girt (the d£gag6e Diane 
Walker), an obdurate suitcase, 
a piano quartet playing Johann 
Strauss, except for its maniac 
Johnny - one - note 'cellist 
(Anthony Hinnigan). who I 
think inspires all the mayhem, 
and some luggage, plus a bell- 
boy and a lady with the world’s 
smallest attache case. ■ It is 
inconsequential, insidious, 
funny, and please will Miss 
Owen do some more. 



A scene from Ghost Dancers 


THEATRES 


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NOW BOOKING TO FEBRUARY 5 1983. 


‘"Imi: SS fig vs?. 

i t&hSff%sSwS < %. 


MAN. 


LYRIC HAMMERSMITH. S CC 01-741 

2311. Gvn 7 JO. Thur Mat 2JO. Sat 

4.30 A 6.15. .N0ISE5 OFF by Michael 

LYRIC STUDIO; Eve* 8 pm JAMES j 
JOYCE 81 THE ISRAELITES, 


PALACE. CC 0 1-437 6834. Andrew 
LtoVd-WrtMTl SONG AN I> DANCE- A 
Concert tor thr theatre. Starring Marti 

Webb In TELL ME ON A SUNDAY A 

Wayne Sleep In VARIATIONS. Mcw-Trl 
8 gm. Mat* Wed 3. Sats.S^S. a.3Q : 
Now bookin', from March 26. First oteht 
Wed "April 7 at 7 pb». 


ftftf Mil 

TIME IS A 


RLEANS" 'MUSICAL! ONE JMO* 

GOOD TIME! Grau sate* 


01-379 6061 .- "Rlnjj Teledata. .01-200 

. 


... edata 01-S 

0200 for liwtant con firmed bkos. 


boom personal -ervlce aval lab 


PICCADILLY. 5 437 4506. CC 379 056-. 
Group sales 0.-836, 3962. 379 6 Obi. 
pfStSl bkt, key 220 2S24. Moo-Fri 7.3D. 
Mat Wed 3.0. Sat 5-30 S 8.1 5. ROYAL 
SHAKESPEARE -OMPANY In WI.'T 
RtSeirs new comedy EDUCATING RITA. - 


MAYFAIR. 623 MM. CC , 379 6565. 
Open* IS- Minch. Now hkpc BOOGIE 
A Men teal. 


MERMAID TH. _Bteclcfrlar*._EC4. 01-236 


OP A.H. Adapted ov Christopher Hampton 
Iron George Stetncr s novel. 


NATIONAL THEATRE. S. 928 2252. 
OUVIER (open *t*«)_ Today 1IJ» 

(Adults 



O H; _ 

prompt ter ' S.3r pm ,ay r' -^ra dret 

RAZZLE b% Tom Stop pard . _ 

COTTESLOI t*mall ““ditteiHm -- tew 
prise Uses) Ton*t 7.30 TRUE WEST "by 
Sam Shepara. Tomor 7J0 SUMMER. 
Excellent cheap se«tt w day of pwl all 

3 theatres. Also «t*ndby 4S mir* before 

part. Car park Resmuranr 928 2033. 
Credit card hko* 928 500- 
NT aha at her majesty’s. 


NEW LONDON. CC UM. WC2. 

01-405 0072 or 01-404 4079. Ev* 7-45, 
Tie* and si’ S.0_aiKl.7.4S. The Andrew 

I«wtv 


PRINCE EDWARD. Old ComptO? ^Tlm- 

Rite and Andrew Ltovd-Webber'i EYTTA- 
Directed by Harold Prince. Era B-Op. 
Mu Thpr* vecononjy prlcei andSal 3J>. 
E»o n*rf end* 10.15- S Bo K Office 437 
5877. CC Hotline 439 8499. Group sales 
379 6061 or Box, OBKC. For tog"* 
24 hr OkB* nftfl THedata 01-200 0200. 


PRINCE OF WALS5 THEATRE. 930 8681- 

CC Holtote 930 0546 or Teledate 

01-200 0200 124 hr BkMi. ROY HU DO. 
CHRISTOPHER TIMOTHY In UNDER- 
NEATH THU ARCHES.' A muslta. oi Uie 
Ftanann and Allen story. Era Moo- 
Thun 7 JO. Fr> & i»t at 515 4 IJP 
Group tale* Sox otic* 01-37S 6065 


QUEEN'S. S CC 01-734 1166. Or 'O' P 

Sate 01-379 iOGl. Even. pas 8.00. Mat 
Wed 3 00. Sit 5.15, and 8.30. ANOTHER 
COUNTRY by Julian MiteOdl. Seat* 
from £3.00. 


RAYMOND RZVUEBAR.CC 01-734 1593. 

“t 7JOO. 9.00 ard T1.00 pm. qo» 
Suns. PAUL RAYMOND presents- THE 
ftSTfYAL OF EROTICA. 


ROYAL COURT. S CC 730 4745.- Era 
O.orMK 5a: 4.00. Mon a Sat Mat'll 
aaai* £2. Last t.toweehs. - OPERATION 
BAD APPLE By G. F. Newman. 


AUDITORIUM 

U IN. MOTION. PLEASE BE PROMPT 
Now booking till Sept. 4. 


OLD Vic toi -028 78161. Tomor only at 

toJtSS 

"Howard 'Ttrenton: -Tickets ftom £1 » 
£E. All wowed* _ w> the Theatre 
offence Fund. 39* .Office _ open today 
from ifl am tomor irom 4 om. 


SADLER'S WELLS THEATRE, EC1. 857 

1672 1673:3856. Credit card* 10 am 
M 6 3SI Z7B 08 7 1/B37 7S05- Grp sate 
379 SCSI- 24 hr distantly conhrined 

fffti f ft ° ram BERT until 27 Marah 

js s 

GHOST DANCES. Tomor. Frl. Sat 7JO 
I pm LONELY TOWN. LONELY STREET 
j AIRS GHOST DANCES. 

( THE GYPSY PRINCESS — Vienne** 
Operetta OP? - 31 March. 

!E%. il? h ssffi 

j AMPLE* °PMt < ^NG an 6.30 am. 

j SAVOY. S 01-836 8898. CC 935 0731. 

I Eves 8-00- Mr: Triors 3.00. Sat 6.00 
i and 8-45. SIMON WARD. BARBARA 
MURRAYjCLIFPORO ROW In PRANCtL 
DURJBRIDGTS.Jt.t. 


GuSt™ “■ "LAST 2 
MARCH 27. 


SHAW THEATRE. 388 13S4. Company of 
Three woductki- e, OTHELLO. Evetilnos 
7 pm. Man e«x 3. pm. 


ST. MARTIN’S. CC 835 1443, »0* 8.00 
Tue* 2.45. Sat 5.0 A 8-0. Good Frl O.DO. 
Asatha Christie'* THE MOUSETRAP. 
World'* kmttet.erer ton. 30th Year. 


SHAFTESBURY. S. CC Shattesburv Ave. 
WC2- Tel BOX Office 836 6596 2nd 
Year Nell Simon's Hit Musical. Welcome 
bact tor- a season TOM CONTI 

. wth . -Sheila brand. they’re 

PLAYING OUR- SONG. OAP* U {Wed 
mat OnfyJ Students £4. era B -°- MM 
Wed, 3. Sets 5 A 8.30. Credit card 
bkfls '930 0731 (4 lines)- 9.00-7.00. 
. Set* 9JO-4JO. Red Broun bkg* 01-839 
3092, • . • 


STRAND THEATRE. CC 01-836 2660. 

01-836 -4143.. NYREB -DAWN PORTER, 
ROY DOTRICE In MURDER IN MIND. 
A thriller by Terence FT re tv. Eves Mon- 

Frl Bj. sets 5,0 end 8.0. Mats Thar 3. 


TALK OF THE TOWN. CC 01-734 5051- 
for reservations — or on entry. Closed 
for F dm J. Ty Award* Toni and Tomor. 
£!5£ l _?«- From a pm S HOURS OF 
TOP ENTERTAINMENT. THE TALK OF 
riHE_- -TOW N GA LA GALAXY REVUE 
HWI.Pnl, PETER GORDENO 111 pmi. 
Dlixw, Dancing, 3 band*. 


VAUDnriUE. CC 01-836 9988. Ewrs. 

8. Wed. nut* 2 AS. Sals. 5 & 8. 

Good Frl 8 pm. GORDON JACKSON in 
ACUlTKA CHRISTIE’S CARDS ON THE 
TABLE. 


VtPnOklA PAIAC8 THEATRE. Era 7.30- 

MmK Wed A Sat at 2 730 New extended 
TAYLOR In THE 
- 1™. POXB by : LILLIAN MELLMAN. 
Bgx OWce oBCg 01-834 1117-8. 01-828 

■ Mte SV9®l. 6r0m 


WESTMINSTER THEATRE. . 834 0283. 
Until March 27. Mata dally 2.1 S. Seats 
£3.50, £2.50. PRIESTLEY'S 


Mystery Thriller , 


INSPECTOR CALLS. 


WHITEHALL. Box off. tel. 01-839 6976. 

01-930 Ml Z-77B5. CC 01-930 6693. 
6894 Group sate tel. ot-379 6061. 

latest ferce. ANYONE FOR 


DEMIS? by JOHN WELLS. Directed by 

CLEMENT, r 

MAT SAT S.M pm. 


DICK 

pm. 


MON-SAT EVES 8.13 


WYNDHAM'S. 5 836 3028. CC 379 6565. 

Group reductions 836 3962 COLIN 
BLAKELEY. ..ROSEMARY HARRIS <n 

... ^ g0f/g m 

BLAKEMORK- 

A 8.00. wed 

mat 2.30. 


SlAXSltT. . nratMART HAHKi: 
ARTHUR MILLERS *U MY S 
Directed by MICHAEL BLAKEM 
Mon- Frl 7.30- Sat 4JQ A 8.00. 


YOUNG. VIC (Waterloo). Y28' 6363. Era. 

7 JO & 2.3D. Sat (An Seat* £2.30). Kit 
MMI.airs to MASQUERADE A Musical to 
at Mas. Inn. 


F.T. CROSSWORD 
PUZZLE No. 4,824 

ACROSS 

1 How “heart all myopic" is 
expressed? (14) 

10 Gold piece found in earth- 
path' (5) 

U Legendary bandleader and 
wealth re-distributor (5. 4) 

12 Heart so bad one can hear 
sounds within it (7) 

13 Reproduce Model-T, A1 time 
corfld be obtained (7) 

14 First indications of type 
roaming any meandering 
pathway (5) 

16 Bison of U.S. fable, perhaps 
(9) 

19 Place to dance— extremely 
happy find (S) 

20 Army crook? (5) 

22 Relief-aid for hard drinker, 
we hear (7> 

25 Lord's ground? (7) 

27 Fixing amount, fools cele- 
brate (9) • 

28 Language of India (many In 
lower part) (5) 

29 Naval officer on the staff? 
(4-10) 

DOWN 

2 Fast times in Derby— same 
outcome (5-4) 

3 Mahler's third in its en- 
tirety? (5) ' 

4 That may come down to us 
— halbert, he. restored (9) 

5 Teacher’s pet almost (5) 

6 Frank at Orient— he is 
standing (9) 

7 Either way. a sop in the 
bathroom (5) 

8 Off-peak callers? (7) 



9 Ground for game in which 
fielder takes time (6) 

15 African apes old colonial 
governor (9) 

17 Boxer knowing pressure? 
(0) 

IS Swedish beef consultant? (9) 

19 Underworld Welsh river fol- 
lows one line of descent . . . 
(7) 

21 . . . Sisterhood? (6) 

23 Changing coats to show rib 
(5) 

24 Home of Die Lorelei— river, 
hein? Could be! (5) 

26 Cane carried by officer at a 
nice angle (5) 


Solution to Puzzle No. 4,823 


DdDDomEHnan' acia 
on □ 
anmaa 
a* a □ 

Q0HDQ 

Bf a □ 

Y 

_Egtng nHBQDBci 
0 Cl Q B □ " ' n n 
gogna aBnoHnnciH 
n a n a n □ hr 
SnnQooQHQ □□□□□ 
□ □ to s a s b 
Q_ .BEiBaBacKqmrar? 



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v, .•sSfvtY.'l 


18 


Financial Times Wednesday March 1? 1982 . . j 


financial times lUlster: an economic 


BRACKEN HOUSE, CANNON STREET, LONDON ECiP 4BY 
Telegrams: Fhumtimo, London PS4. Teles 8854871 
Telephone: 01-248 8000 


Wednesday March 17 19S2 


disease which 




tt 


Policy for the may yet prove fatal 


« X*- r 

* ■ » • K 




h r.:. ’; ?**<£'• 
i . f 


public sector 


By Brendan Keenan in Belfast 


MRS THATCHER'S Govern- 
ment is getting itself into a 
tangle ever hie nationalised 
industries. There are some 
long-standing problems with 
the management of these indus- 
tries and their relations with 
Whitehall, but Ministers are is 
danger of allowing rhetoric and 
political crusading to take the 
place of dear thinking about 
how the problems might be 
resolved. 

It is curious that a Government 
dedicated to non-intervention 
should be intervening in the 
state-owned enterprises on a 
more continuous and detailed 
basis than most of its predeces- 
sors. No doubt Ministers would 
claim that, unlike the Labour 
Government in 1974-79. they 
are intervening for constructive 
reasons — to bring The finances 
of the public sector under 
control to impose tighter discip- 
lines on performance. But the 
effect of the intervention, to- 
gether with irritable speeches 
about inefficiency and poor 
labour relations, is sometimes 
not very constructive. 

Strategy 

Mr Patrick Jenkin, Secretary 
for Industry, announced earlier 
this week some rather modest 
changes in monitoring arrange- 
ments. stemming from an un- 
published report by the Central 
Policy Review Staff. The 
changes include establishment 
of “strategic objectives “ for 
each nationalised industry, a 
reduction in The size of boards 
and the appointment of more 
highly qualified non-executive 
directors, and the strengthen- 
ing of “business expertise” in 
Whitehall to assist in the moni- 
toring process. 

The emphasis on strategic 
planning is hardly novel and 
past experience has not always 
been encouraging ffor example, 
the 10-year strategy for steel 
devised by the Tory Govern- 
ment in 19721: but a serious 
effort to clarify objectives for 
each nationalised industry 
should hp helpful. 

As for the rest of the package, 
it is not obvious that the most 
pressing need in fhp nationa- 
lised industries is for more and 
better monitoring. Tpv>»sti ora- 
tors from the snopcoring 
ministries and the Treasury, 
from the Wnnopiliejs Commission 
and no doubt from parliament- 
ary committee could well be 
falling over each other, distract- 
ing the managers of nationalised 
industries from theiT real work. 

An excess of monitoring may 
have the effect of “politicising” 


the public sector still further. 
However, the main reason for 
the high level of ministerial 
intervention over the past two 
years has been the impact of 
the nationalised industries on 
the public sector borrowing 
requirement 

Little thought 

Soon after it came into office, 
the Government made some 
optimistic assumptions about 
the speed with which the 
nationalised industries’ need 
for public funds would be 
reduced. These hopes were dis- 
appointed. The result has been, 
first that ministers have tended 
to use the nationalised indus- 
tries as scapegoats for missed 
financial targets, and second, 
that the industries* costs and 
revenues have become the 
subject of intense and agonised 
ministerial attention. 

Preoccupied with the need to 
screw down nationalised 
industry spending, ministers 
have given little thought to 
some of the underlying prob- 
lems. One of the weaknesses 
of present arrangements Is the 
Act that for historical reasons 
most nationalised industries 
depend almost wholly on loan 
capital As a report by the 
Hundred Group of chartered 
accountants pointed out last 
year, a better balance between 
equity and capital would have 
great advantages, not least in 
giving the managers more 
normal commercial freedoms 
and In making It easier for 
them to raise private sector 
funds. A detailed look at how 
this proposal could be imple- 
mented might have been a more 
fruitful assignment for the 
Central Policy Review Staff 
than tinkering with board struc- 
tures and monitoring arrange- 
ments. 

Controls 

Where a market solution is 
feasible, it should be applied. 
The Government is right to 
press ahead with the injection 
of private capital and the 
removal of unnecessary mono- 
poly privileges. Where a 
degree of monopoly is unavoid- 
able, suitable regulatory con- 
trols must be devised. 

But the temptation to "do 
something” in a great hurry 
about nationalised industries as 
a whole should be resisted. A 
pause for reflection, in which 
each industry’s present prob- 
lems and future direction can 
be studied on their merits, 
seems in order. 


India and its 
neighbours 


O N THE roads oat of 
Carrickfergus, the 
empty man-made fibre 
plants still stand, as though 
ready to spring back to life at 
a moment’s notice. Beyond 
them looms the half-completed 
power station at Kilroot, 
planned to produce the power 
for industries which are no 
longer there. 

In the hills behind are the 
reservoirs for the millions of 
gallons of water which are no 
longer required. Last week 
British Enkalon in Antrim and 
the Courtaulds subsidiary in 
Tyrone added 1,100 to the sorry 
list of Northern Ireland’s lost 

jabs. 

"De-industrialisation is a 
concept in other countries,” 
says Mr Terry Carlin, secretary 
of the local wing of the Irish 
Congress of Trade Unions. “In 
Northern Ireland it Is a 
reality." 

Even Mr James Prior, the 
Secretary of State, has said 
I that Ulster is suffering, not a 
recession, but an economy in 
decline. There is little 
optimism in Belfast that the 
worst is over. 

Unemployment now stands 
at 19-3 per cent. Almost one in 
every four of the male popula- 
tion is out of work. The 
economy has been in decline 
throughout the 1970s, after 
performing creditably in the 
1960s. but the trend accelerated 
dramatically last year. 

“1981 was a savage year,” 
says Mr John Simpson, an 
economist at Queens University, 
Belfast. “All the economic 
indicators ran backwards. But 
it looks as though some sectors 
will show an upturn in 1982.” 

However, Northern Ireland, 
once famous as a centre of the 
engineering and textile indus- 
tries, is now, perhaps for the 
first time, in danger of losing 
its entire manufacturing: base. 

Most of the traditional com- 
panies still operating are in 
trouble 

In shipbuilding, Harland and 
Wolff will bice problems, even 
if it does slim its workforce by 
1,000, so long as the market for 
the ships in which it specialises 
remains depressed. 

Dr Vivian Wadsworth, its 
chairman, says the company can 
prosper if both the workforce 
and the physical plant are 
rationalised. In the interim, 
though, the Government would 
have to add to the £200m spent 
on the company since 1975. 
Many senior figures in the Pro- 
vince are now talking openly 
about the possibility of closure 
for the most symbolic of all 
Northern Ireland firms. 

The Shorts aircraft company 
is also cutting back on employ-: 
menL Its successful Skyvan 
seems to be nearing the end of 
its sales life and the passenger 
version is selling only slowly. 
Independent calculations sug- 
gest the company may need up 
to £3Qm of Government aid, this 
year. 




K Aff.— IWSui 





... . /** / ' •:* 

u ■* • • • - 




Even James Prior 
(above) admits that 
Ulster’s economy is in 
decline. Recovery, he 
argues, depends on some 
measure of political 
agreement But would 
he devolve economic 
powers to a local 
administration? 


Even the proudly independent 
Mackies, the textile machinery 
manufacturer, has begun to 
look vulnerable 

Overall, the numbers 
employed in manufacturing 
have skimped from 170,000 a 
decade ago to 120,000 today. Mr 
Carlin and other believe that 
unless the slide Is halted, there 
will be no base on which to 
build a new economy when, and 
if. better times arrive. 

Mr Adam Butler, MP, who is 
Minister of State at the 
Northern Ireland Office with 
responsibility for industry, sees 
the danger. “The smallness of 
the economy is a problem: jt is 
mimscide almost But although 
it is tied to the economy iff 
Great Britain, it is separated 
physically and in perception.” 

The figures would be even 
worse but for the 80,000 extra 
jobs created in the services 
sector— many of them direct 
government jobs — and the 
100.000 people who have left 
Northern Ireland in the past 
10 years.. 

To blame all of this catas- 
trophe on civil strife woiffd be 
an over-sdsnp^fication. Northern 
Ireland’s economy has. always 
been vulnerable because of its 
dependence on the traditional 
trio of agriculture, engineering 
and textiles. 

Politicians and trade unionists 
point to ihe recession and to 
government policies as the 
major reasons for the collapse 
of the past five years. Ulster 
is treated generously in terms 


of public spending. Bat Mr 
Simpson has calculated that the 
subvention from the exchequer 
has fallen, as a proportion of 
public spending, from 30 per 
cent to 21 per cent in the last 
four years. 

Prof Desmond Rea and Mr 
Stephen Harvey of the Ulster 
Polytechnic have pointed out 
that a 10 per cent cut across 
the board in public spending 
repre se nts a 4 per cent drop 
in GDP in Britain but a 7 per 
cent Ml in Northern Ireland. 

These issues have become 
increasingly political as Mr 
Prior warns local politicians 
that economic recovery depends 
on some measure of agreement. 
The different parties reedy that 
the one thing they are agreed 
upon is the need for more public 
expenditure but that ihe 
British. Government does not 
listen. 

A senior official 4n the 
Department of Commerce says 
be cannot think of a single case 
where a firm closed because of 
the security situation. Where 
the “ troubles " do play a major 
part is in deterring outside 
investment, 

A study in the Cambridge 
Journal of Economics four years 
ago suggested that the loss of 
jobs attributable to violence was 
20,000 in 1976. 

"We said ten years ago that 
it would take a decade before 
the effects of the troubles 
showed through," says Mr 




■;‘W: 

"is 

.* «.* I.-' ' 






as 




Harland and Wolff's Belfast shipyard: a symbol in danger 


summer,' but it has run into Whatever the structure, it Seamus Mallon of the' 


S serious trouble. The idea is to seems clear that there is much believe that devolution may not 

find a chieF executive with a to be done. It is only this year be worth . having, unless the - 


politicians and businessmen, ““ u * ” w “«r i 7 -V ■ . 

SM *»■»*> ^ubncs ss fir” srU" £• 


DoC adopted 


trial development strategy has sector - , bu * <*«*«* strategy of setting job-creation of this kind, 

become more sophisticated and “"S down J 0 *? and 1,0 targets. Techniques and There are 


administration has real powers 


professional, as compared with suitable successor is in sight. 
Northern Ireland. ‘ There are growing complaint 


targets. Techniques and There are straws which can, 
resources for identifying likely be clutched. The record of firms 


Northern Ireland. ' There are growing complaints investorsseemhaphazard.com- which have invested, - Eke ! 

The present system is that from unions, the local CBl and pared with those of the IDA Hughes Tool and Hyster. is one • 

the Department of Commerce is economic observers thsrt the Th .„ , ... of success and expansion. : In I 

responsible for attracting in- IDB wii not be sufficiently 1 ' ThUfrlSSSSS-iI areas— roads. trteconuwiiv i 

ward investment, while the independent of government, icatians. labour experience, and 

xr t i j tv i a. j .jJfi generous in Northern Ireland Mentha**, 


Northern Ireland Development Ministers and civil servants P” a l " ilir _ technical education — Northern ■; 
Agency (NTDA) promotes and retort that any such body must an i 7 II ™.°~ Ireland - has considerable i 

on .“*21. advantages over the Republic. , 

i I Northerners point with envy to Even the troubled De Loreatil 

the selling power of the South’s nniM «ue»iwfiilhr turned a s- 
UNEMPLOYMENT IN NORTHERN IRELAND tax-based incentives. £reen fieS riteinto a car plant 


UNEMPLOYMENT IN NORTHERN IRELAND 


June, 1979 
Jane, 1980 
June, 1981 


Figure* in thousands 
Men 

in work Jobless 

28&J5 43 JO 

280-0 49-5 

iSSA 733 


The incentive scheme Is under in' two years. 


Women 

in work Jo blr 

22 M 19.8 

233.4 2X5 

213.9 305 


review and it may prove an . Officials estimate that the 
i early litmus test for the Gov- Province needs to create 8,000 
Jobless ernment’s seriousness about jobs a year in manufacturing. 
19.8~ Northern Ireland devolution, just to make a dent in the un- 
2U5 Mr Prior is undoubtedly right employment level Tt is a target 
30i when he- says that political which has never been achieved; 


Percentage change. 1981 on 1979 


agreement would do wonders Tt M v. that w u« n 

«- SfJ? 

he go further iMlnilog Northern Ireland caught a cold, 
administration real .economic Now that the British economy 


assists the establishment and be accountable and that the 


powers.? . 


is distinctly unwell only a sus- 


expansion of firms. South’s IDA is not as free . as Government adopt a different Northern Ireland disease from 

This structure has been com- many seem to believe. approach to public spending proving terminal 

pared unfavourably with the The big difference, however, from the rest of the .UK-? Might-. The- Province- needs to devote 

" one-stop shopping " offered is that the proposal is to staff it have a different industrial - all the wasted energies of tlw 
by tile Republic through its the IDB with civil servants incentive scheme, involving past 12 years to its economic 
Industrial Development Autho- from Commerce — apart from fiscal changes 7 Could the flow problems. Even then, British 
rity (IDA). After years of a handful of top jobs. of savings out of Ulster — which Ministers may need to show, 

argument, the Government Mr Butler insists that the IDB Prof Rea and Mr Harvey, sug- more imagination- about the 
agreed to establish as Indus- will operate ait arm’s length gest could be £30Gm a year—- nature of Northern Ireland’s 


a Northern Ireland tained effort can prevent the 


trial Development Board (IDB) from government Later this be controlled ? 


relationship with -the UK than 


to combine the functions of month he will be defending the Such questions have hardly they have in the past 


Commerce and NIDA. 


The IDB is still scheduled to land Committee of the 
come into operation this Commons. 


plans before the Northern Ire- been raised in the arguments 


alternative — if 


over constitutional and political efforts are not made— hardly 
structures. Politicians, like Mr bears thinking about. 


THERE IS something incon- 
gruous, not to say distasteful, 
about Marshall Dimitry Ustinov, 
the Soviet Union's Defence 
Minister, bemoaning the arms 
build-up in the sub-continent 
on his current visit to New 
Delhi. 

The Russians are probably 
responsible for more of that 
huild-up than all their Western 
adversaries put together. Since 
the signing of the 15-year 
Friendship Treaty with India 
in 1971 they have poured 
billions of dollars worth of 
weapons systems into India, 
which now depends on the 
Russians for the bulk of its 
sophisticated arms inventory. 

This military hardware in- 
cludes such items as MrG-21s, 
AUG 23s. MIG 25s, tanks, mis- 
siles, and batteries of electronic 
equipment India is currently 
negotiating the possible pur- 
chase of the more advanced 
MIG 27. In 1979 India and the 
Soviet Union signed a major 
deal worth about $2bn for the 
overhaul of the Indian army. 

Militarism 

Then there was the invasion 
of Afghanistan in 197®- ' w ^ at ‘ 
ever reasons the Soviet Union 
may have used to justify ' this 
particularly brutal piece of gun- 
boat diplomacy to India, it has 
been a prime factor in raising 
tensions and driving those 
countries vitally interested in a 
stable subcontinent away from 
political options sad towards 
military ones. 

Even -if one were to accept: 
that India’s recent major arms 
build-up is the result of a 
corresponding increase in 
Pakistan's rearmament pro- 
gramme — and the case is 
arguable at best— the trigger 
for this renewed and dangerous 
militarism was Afghanistan. 

But for the invasion it is 
unlikely that the U.S. would 
have offered Pakistan a $8.2bn 
arms and economic package and 
equally unlikely — given 
Pakistan's sensitivities towards 
the Islamic world and its con-' 
cern about its non-aligned image 
—that such a gesture would have 
been easily accepted. 

One suspects, however, that 
India knows all this. India's own 


commitment to non-alignment 
is firm. Critics of Mrs Indira 
Gandhi’s increasing dependence 
on the Russians are off the mark 
when they claim this is because 
she harbours some secret 
sympathy for the Kremlin’s 
leaders and their policies. 

She is, after all. her father’s 
daughter. Much of her early life 
was spent living the struggle 
for Independence at the side of 
Jawahariah Nehru. The 
integrity and independence of 
sovereign India is something 
die feels passionately about. 
Within India, the Communists 
are a nagging threat 

Irritation 

Yet India, 35 years after the 
end of the Raj. remains a prickly 
member of the world community. 
It is at odds with the Americans; 
overdependent on the Russians, , 
anxious to mend its fences with 
the Chinese but moving too 
slowly in that direction and 
talking to the Pakistanis about 
peace in a desultory and half- 
hearted way. Indian indebted- 
ness to the Soviet Union seems 
almost accidental, a result of her 
bad relations elsewhere. It also 
undermines her own insistence 
on self-reliance. 

In one sense India's irritation 
with tiie U.S. is understandable. 
U.S. strategy to check Soviet 
power includes support for an 
unpopular regime in Pakistan. 
Tbfs threatens India’s faltering 
self-confidence as the dominant 
power in the region. 

U-S. opposition to the IMF’s 
KS-Stm loan to India— motivated 
■more by dogma titan good sense 
—cannot have helped. 

Fence-mending 

Kit India too must shoulder 
some blame and move more 
positively to redress the balance 
Of its international relations at 
a time when it needs the sup- 
port of the western banking sys- 
tem and the supranational 
agencies to tackle the huge 
economic problems it faces. 

A clear-cut position condemn- 
ing the continued presence of 
Russian troops in Afghanistan is 
one option. Another is pursue 
a more vigorous fence-mending 
policy wdth the U.S. as well as 
with its regional neighbours. 


Men & Matters 


Welcome home 

It would be going too far to 
suggest that the slightly eccen- 
tric hut well-connected Charles 
Douglas-Home personifies The 
Times as we knew it 

But be certainly fits the 
original mould more comfort- 
ably than Harold Evans. And 
the feeling in Gray’s Inn Road 
as the nephew of the former 
Tory Prime Minister takes over 
as editor is that some of the 
traditional stylo so rudely re- 
modelled this past year will 
now be restored. 

. Nobody expects — or wants 
— sudden radical changes. 
Douglas-Home himself is*- still 
a bit bemused by the pace of 
events which within a few days 
took him from the brink of 
voluntary redundancy to the 
editor's chair. 

His first concern yesterday 
was to end the office faction- 
alism that attended the Ides of 
March dispatch of Evans, and ' 
reassure the confused and- dis- 
traught majority of- joumaKsts. 
caught to the middle, of the tow. 
Senior staff would- be surprised 
if the paper swung politically 
to the hawkish Right as re- 
portedly Murdoch wants. 

Douglas-Home is remembered 
as a young reporter, rising 
from the Labour conference 
press table to. applaud Harold 
Wilson. And he has admitted 
voting three different ways in 
the last three elections. 

Now 44, he Is the first editor 
to be appointed from The limes' 
staff for as long as any of its 
reporters recall. He has neither 
the crusading drive nor technical 
expertise of Evans; nor the 
quirky intellects aiism of a Rees- 
Mbgg. But he has had a 
thorough grounding in every 
aspect of the trade. 

After Eton, Douglas-Home 
spent a few raffish years in the 
Royal Scots Greys— he was 
known as “ Close-clinch Charlie " 
in the surrounding social set 
when ADC to the Governor of 
Kenya. 



“Is there anything in ‘Letter* ; 
to the Editor’" about the first 1 
cueJcoo to be poshed out of the . 
• . nest?” 


But a .bad bout; of hepatitis 
made him a non-drinking, non- 
smoking vegetarian. . 

He started as a reporter on 
the Scottish Daily Express, 
moved to London as deputy to 
Chapman Pincher. and after a 
couple. of years as. diplomatic 
correspondent joined The Times 
t» cover defence iu'1905. . 

Douglas-Home earned praise 
for his reporting of the Israeli 
six-day war and the Soviet build- 
up to the invasion of Czechoslo- 
vakia. Rees-Mogg made Him . 
features editor in 1970 and in 
1973 he became home editor for 
a five-year spell only marred in 
the end by a rumpus over the 
personal files he kept on his 
reporters. 

Few echoes of that episode 
have survived bis years since 
as foreign editor and deputy 
editor. For he has a scru filly 
relaxed air and is more affable 
than not 

He delegates responsibility 


widely and easily. One of the 
likely changes that will be 
welcomed is a return to the 
office federalism instituted by 
Rees-Mogg, which Evans 
replaced with a more autocratic 
system of intervention. 

Douglas-Home’s profes- 

sionalism — he got The Times its 
scoop last year on the Royal 
engagement — is rounded out by 
a variety of leisure pursuits 
from horse-riding to music and 
singing. 

He writes for pleasure, too, 
in tiie cool analytical style be 
favours from his staff. He has 
just completed a book on the 
Royal prerogative— an examina- 
tion of how the real Establish- 
ment would sort out who should 
take office if any argument arose 
about that after the next 
election. 

Inside story 

The Federal Reserve Bank of 
New York, whose vaults contain 
most of the official gold reserves 
of the free world— more gold 
titan Fort Knox in fact — has 
just suffered its worst robbery 
in its 68-year bistory. 

Fortunately, the thieves did 
not get away with any of he 
gold. Instead they managed to 
make off with $60,000 (£33.000), 
aR of it in small cams, which 
must have weighed about a ton. 

According to the bank, the 
suspects, who are employed in 
the Fed's coin department, oat 
open bags containing new dollar 
coins and quarters, took out a 
handful and stitched them up 
again with the same thread used 
by the Federal Mint in Phila- 
delphia. 

In some cases, they replaced 
the purloined dollar coins with 
quarter*, which are only slightly 
smaller, to give the impression 
that the bags were still full 
figuring presumably that it was 
worth forgoing a quarter of the 
loot to cover their tracks. 

Eleven of the 16 members of 
the bank's coin department have 


been charged with the theft. All 
bad -access to the vaults, where 
more than one person must 
always be present when money 
is being handled. The other 
five have been transferred to 
other departments in the bank. 

Con-fused 

The internal combustion 
engine, sliced bread, drip-dry 
shirts— life’s great inventions — 
all- had difficult births. But 
none more so than tee brain 
child which is now causing red 
faces in very important circles 
in Israel 

Chief Economic Minister 
Yaacov Meridor set tee nation 
agog when be announced last 
year that he was helping an 
inventor develop a revolu- 
tionary energy process. It 
would be the most important 
discovery since the wheel, and 
solve the world’s energy prob- 
lems. crowed the enthusiastic 
Meridor. 

Scientists hotly debated the 
merits of the device, which was 
claimed to generate cheap elec- 
tricity by recycling steam used 
to power electricity generators. 

Most energy experts were 
sceptical, but a few scientists 
were actually impressed with 
tee device and its alleged 
ability to light a whole town 
on the energy needed for a 
50-watt bulb. 

Undear heavy public pressure 
to reveal his invention, Meridor 
allowed Israel Television to 
film it and presented a detailed 
report to the Energy Ministry 
last weekend. 

Then, its inventor, it was 
revealed, has a long history of 
fraud. 

Meridor is now using a lot 
of energy himself to explain 
how he was taken in. The 
opposition has already asked 
him to resign, but Prime 
Minister Menahetn Begin told 
Meridor to stay. 



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-- F i nan riaT_Tmes Thiirsdav- March- 18. 1982 




Financial) 'Times Wedji«day March 17 19S2 



19 


Alain Cass, recently in Singapore, looks at the growing problems of the City-state. 


TWENTY YEARS of sound 
economic management and 
political stability under the Brm 
guidance .of Prime Minister Lee 
KOan Yew ’have pulled Singa- 
pore into the ranks of the 
developed world. 

But this very success— based 
j on low wages, high growth rates 
and a liberal, market economy 
open io foreign influence— as in- 
i creasingiy creating its own 
problems. 

The gap between the rapidly 
rising a spi nations of many of 
the city-sta-te's 2.4m people and 
the reality of iheir lifestyle is 
crowing and is in danger of 
becoming a political liability. 

Nowhere is this clearer than 
in the constituency of the 
Member for Anson. Mr J. B. 
Jeyaretnarn,. Singapore’s first 
opposition MF for over 15 years, 
hojds his ,w surgery "on a wind- 
swept ping pang table with 
praffitf eaxvedr-acros? the fading 
surface. ' 

A faint smell -of refuse wafts 
across the fable which stands 
cordoned off to give it a 
semblance of dignity and pur- 
pose at the foot of a huge block 
of government-owned flats. 

Mr Jeyaretnam's victory, 
much to the consternation of the 
Government, demonstrates that 
a growing number of people in 
Singapore are acutely aware 
that the material benefits of the 
country's success have been un- 
evenly spread. 

Until now the success of the 
Singapore experiment has been 
self-evident: average annual 
growth rates over the past 20 
years of more than 9 per cent; 
no unemployment to speak of; 
a higher per capita income than 
any Third World country out- 
side the oil-producing states: a 
booming financial centre, world 
ranking oil refining centre and 
—since last year— the second 
busiest port after Rotterdam. 

Within, the. region Singapore 
has a politicaf .and diplomatic 
stature way beyond its minis- 
cule size. Mr Lee’s own person- 
ality has added to this. 

But the three pillars of this 
success — ruthless political con- 
trol, moving .the economy up- 
stream into high technology 
manufacturing and an attempt 
to “ shape ” the Singaporean 
personality— no longer seem 
unshakeable. . . 

“The rugged society is still 
in place," said one diplomat, 
"but it now has a question 
mark hanging over it." 

Mr Lee's prescription for suc- 
cess has carefully avoided, 
cushioning Singaporeans against 
the inflationary effects .of high 
growth .rates. This, lough 
approach is now beginning to 
hurt; 77. per cent of the working 
population earns less than $300 
a month, half, earn less than 
$200. The .official inflation figure 
ures are, around .11 per cent a 
year.. But this seerns inconsist- 


Cracks appearing in 
Lee’s ‘rugged society’ 



Tarry Kirk 

Singapore ancient and modem: new high-rise office blocks tower over Chinatown 


ent with the rise in the pur- 
chase price of government fiats 
which has risen by between 66 
and 100 pm- cent over the past 
two years. Staples such as rice 
{19 per cent last year) and pub- 
Kc transport (17 per cent) have 
both climbed rapidly. 

There are now over 100,000 
people waiting for government 
flats — or 4.2 per cent of Singa- 
pore’s population. 

The cost of 'private housing, 
meanwhile, has spiralled. Tradi- 
tional neighbourhoods have 
been bulldozed to make way for 
high-rise blocks and the price 
of land has put even the most 
modest house beyond the reach 
of all but the rich. 

Mr Lee acknowledged this 
danger in a speech at the 
Chinese New Year. Young 
people were impatient to “get 
their share of the prosperity 
before the boom evaporates. 
There is disbelief in -the dura- 
bility of the change we have 
wrought." 

There is however no easy 
way out of this dilemma if the 
Government is to stick to the 
fundamental principles of its 

economic-philosophy. 

Singapore is obliged to main- 
tain high levels of growth hut 
cannot afford to push wages up 
too fast for fear of further 
fuelling inflation and eroding 
the economy's competitive edge 
abroad. 


At the same time Mr Lee is 
adamant that both the trappings 
and the substance of a welfare 
state have no part to play in 
his “rugged society." Self- 
reliance is the watchword. 

There are. nevertheless, small 
cracks in this tough exterior. 
Since the Anson defeat the 
housing programme has been 
speeded up and the mid-year 
wage awards, which are largely 
determined by the Government, 
may be adjusted upwards. 

The Budget speech later this 
month by Mr Tony Tann, the 
Trade and Industry Minister, 
may provide further evidence 
of the delicate balancing act 
which the Government must 
now perform. 

In the long run the Govern- 
ment is pinning its hopes on 
the "second industrial revolu- 
tion." The aim is to turn 
Singapore - from a low-wage, 
labour-intensive economy pro- 
ducing goods vulnerable to 
world recession and protec- 
tionism into a high-technology, 
capital-intensive centre. 

Wage bills were pushed up 
by almost 75 per cent over the 
past three years, though they 
remain low by Taiwan or South - 
Korean, standards. -A. Skills 
DevelopmentrFund was set nirj 
af'the same time ' to encourage 
companies to upgrade workers 
and . . technical education 
received a big boost- — - 


The early signs are that the 
strategy is' beginning to work. 
Productivity is climbing and so 
is new investment — mostly from 
abroad — in chemicals, ‘heavy 
engineering, the electrical and 
electronics sectors. 

But there is a growing lobby 
arguing for an alternative 
economic strategy. Their doubts 
are based on the view that the 
present policy will -only sub- 
stitute one set of products 
vulnerable to the- vagaries of 
the - world economy with 
another. 

Dr Pang Eng Fong, director 
of Singapore' " University’s 
prestigious Economic Research 
Unit also ' argues that high- 
technology industries such as 
the ones Singapore is competing 
for are heavily dependent on 
world markets. These industries 
are usually, though not always, 
large-scale requiring large 
amounts of land and energy. 

Singapore is short of both 
land and energy. . 

They also require skilled 
workers and professionals in 
large numbers and . Singapore 
has precious, few of these. Over 
11 per cent of the present work- 
force is -already- -imported. 

Dr - Pang also argues that 
pursuing the present' strategy 
means thaf Singapore will have 
to compete with neighbouring 
countries for foreign capital, 
foreign markets and labour. - . 


Instead, he believes, Singa- 
pore should exploit its position 
as an entrepot and top flight 
services centre for the develop- 
ing economies of Asja. 

There is also a question mark 
over Mr Lee’S enthusiasm for 
. Japan as Singapore’s model. • 

The characteristics of Japan 
Inc. — loyalty to and identifica- 
tion with the company— may not 
in any case be right for the 
highly individualistic largely 
southern Chinese population of 
che city state. 

Japan is an industrial society. 
Singapore is a mercantile one. 
-Beyond, that most- companies in 
Singapore. anTsmaH — more than 
90 per cent employ fewer than 
300 people— and do not have 
the means to substitute state for 
certiorate welfare as Mr Lee 
would like them to. 

Underlying all these questions 
Is' the increasing concern — 
clearly manifested at Anson — 
that many Singaporeans feel at 
Mr Lee's heavy-handed, Con- 
fvcian-style of government. 

Well meaning though they 
may be. his relentless afttempis 
to -make good citizens of them 
by trying to manipulate their 
private lives is undoubtedly 
resented even by his own sup- 
porters. 

His latest attempt — com- 
pelling: children to look after 
their . parents in old age by law 
— neatly encapsulates the prob- 
lem.- “I may agree with the 
aim." said .one lawyer, "but I 
find the--- means- -—'offensive. 
Besides you can’t legislate for 
filial piety.” 

As'is eften-the case there are 
sound economic reasons for this 
move. By the year 203ft Singa- 
pore** birth. - rate, at present 
trends, will' reach zero growth 
at a total of 3.fim.'_ 

The population is . getting 
older and will' get older still. 
The average- size of households 
has dropped from 6.2 people in 
1968 to 4.8 in 1982. as the trans- 
formation of the urban land- 
scape has encouraged the break- 
up of the traditional. Chinese 
three-generation family. 

This . means more bouses, 
more pressure on prices, less' of 
the economic cake to go round. 

The Anson by-eiection pro- 
vided the first poll in two 
decades in . which Singaporeans 
openly questioned some of the 
fundamental assumptions of the 
“rugged society" fashioned by 
Mr Lee, the country's Prime 
Minister for nearly 28 years. 

^Looking back,” said one 
academic, Anson -was - some- 
thing of : a watershed. Not be- 
cause the election of a- single 
MP wilt -jShake- the dominance 
of-: .the. establishment -.but be-, 
cause- it ; marked the end of 
absolute, unquestioning loyalty 
to the . Government and the 
beginning of a real debate of 
the options for the future “ 


Quality v. quantity 


What is wrong with 
British aid 


A GREAT deal of discussion 
about Western aid programmes 
in the last year or so (for 
example, in the prolonged 
debate following the Brandt 
report) -has been concerned 
with the quantify of aid pro- 
vided. But equally important 
as the Brandt report made 
clear, is the quality of whatever 
aid is given. 

This question is particulariy 
important in the case of the 
British programme. Since the 
size of our aid programme will 
decline drastically over the next 
two or ihree years, it is all the 
more important to ensure that 
the aid we give is providing the 
best possible value for money. 

How does our programme 
stand up 10 an examination on 
that score? It may be useful 
to take a number of the factors 
commonly regarded as im- 
portant id assessing the 
“quality” of aid and see how 
the British programme com- 
pares with ot-her Western 
countries. - 

One factor which is Df crucial 
importance in assessing quality 
is the degree of “ concession- 
ality” of the aid given: how 
much is' given and how much is 
lent, and if lent on what 
terms? . - On this count, the 
British programme comes out 
fairly well. In 1980. according 
to - the latest OECD review. 95 
per cent of total British over- 
seas .development aid commit- 
ments were in Che form of out- 
right grants (against an 
average for OECD countries of 
only 76 per cent). The overall 
“ grant element ’’ was 97 per 
ce^rit against 90 per cent for the 
OECD as a whole. 

Another test often used in 
examining quality is the 
amount of aid that goes to the 
poorest countries twhat the UN 
calls “low income" countries, 
a more comprehensive grouping 
than the “least developed." 
which exclude India, Pakistan 
and Indonesia, for example, 
even though their income a head 
is low). On this measure the 
British -programme does not 
Come out- at all badly. We 
devote something like two-thirds 
of our ‘bilateral aid programme 
to countries in this group, a 
larger percentage than most 
other OECD countries (partly 
because a considerable propor- 
tion of our programme goes to 
the Indian sub-continent and 
sub-Saharan Africa, which are 


By Evan Luard 


very pqor areas). 

Unfortunately, on most of the 
other main tests' the British pro- 
gramme does not do so well. 

A widely accepted measure, 
for example, concerns the pro- 
portion of aid that is lied 
(usable only for purchases in 
tlie donor country ). Aid-tying 
is generally accepted to 
diminish appreciably the value 
of- the aid provided, since ii 
compels the recipient to use 
the money in a way it would 
not otherwise have , chosen. 

The proportion of aid that Is 
tied has risen for most aid- 
donors over the past few years. 
But the British performance is 
worse than that ,of any other 
country. Some KJ per cem of 
British aid . was tied, in 198U. 
and a further small amount par- 


tf Important to ensure 
that the aid we give is 
providing the best 
possible value for. 
money * ; 


Hally tied, the highest propor- 
tion of any OF.CD country’ (fnr‘ 
most the figure is more like 20- 
30. per cent): - This is particu- 
larly difficult to justify since, 
with. North Sea oil, Britain has 
enjoyed a stronger balance of 
payments position than almost 
any other, donor country. 

. Next, take the amount of aid 
given to the multilateral insti- 
tutions proriding concessional 
aid such as the IDA and UNDP. 
Many people (though not aJJ) 
feel that aid provided in this 
form is more disinterested than 
bilateral aid and that a larger 
proportion should go through 
these channels. In 1980. how- 
ever. only 14 per cent of British 
aid went through multilateral 
institutions: a smaller propor- 
tion than for any other OF.CD 
country except France and Bel- 
gium. 

Again, let us look at tfifc pro- 
portion of British aid that goes 
to agriculture. ' At the Cancun 
summit there . was widespread 
agreement aboufthe key impor- 
tance of more help to develops 
ing countries to increase their 
food production, an assessment 
that -Mrs Thatcher- went nut of 
her way to endorse. Agriculture 
remains the basis of the 
economy in nearly ail develop- 


ing countries. Yet at present 
aid for agriculture represents 
Only 10.9 per cem or the British 
bilateral -aid programme: one 
of the lowest of all OECD 
countries (it compares with an 
average of 32 per cent for the 
EEC as a whole). 

So on most of the measures 
communly used to measure aid 
quality, the British programme 
does not come out well. But 
there has been another develop- 
ment over the last year, which 
is not yet reflected in the 
figures bur has had a far more 
damaging effect on the value 
provided by British aid. This is 
the deliberate decision that a 
part of our aid programme 
should be determined by 
“political, industrial and com- 
mercial ” considerations. This 
has heen reflected in two recent 
decisions: to use a significant 
proportion of aid funds to 
hubsidise British tenders for 
the construction of steel mills 
in India and in Mexico. Nearly 
£200m of British aid will be 
expended on these two projects 
alone. To the extent that the 
British tender price was above 
thai of lhe nearest competitor 
(and it would nol otherwise 
have been needed) this money 
not providing aid for the 
receiving country, but for the 
British company involved (in 
both cases Davy). Yet it comes 
out of rhe aid programme and 
is thus subtracted from the 
loin! available for use else- 
where. 

As the Financial Times com- 
mented in October: *’ The use of 
aid funds to secure overseas 
contracts in this way divests 
resources from the poorest 
countries, which are not in the 
maifcet for large projects and 
front multilateral institutions 
which are generally better 
equipped to assess a developing 
count ry's aid requirements.” 

Unfortunately, though the 
volume of British aid secures a 
fait 1 amount of publicity, little 
attention is normally given to 
the iray in which our aid pro- 
gramme is expended. Given the 
inadequate amount of aid we 
now give, there is surely a need 
for much more dismission, in 
press- and Parliament, about 
the way the small programme 
which remains is at present 
allocated. 

Ewan Luard is a format Labour M P 
lor Oxford and \ Junior Mininar who 
now works for Oxlam. 


Letters to the Editor 


The Chancellor’s pragmatism: Treasury rules not OK 


From the Senior Economics 
Consultant Simon and Coates 

Sir,— On March 11 Samuel 
Brittan quoted our remark that 
“Milton Friedman no longer 
rules OK" and asked “when 
did he?"' I would- argue that he 
dad as recently as two years ago; 

Friedman has long claimed 
that control of the money supply 
is both a necessary arid"sufftcieiit 
condition .for bringing down 
inflation: budget deficits, on the 
other hand, may be important in 
determining.- interest rates -and 
growth but they have no impact 
on inflation unless they affect 
the rate of monetary expansion. 
TTie original medium-term finan- 
cial strategy was exactly in line 
with the- Friedmanite tradition 
of giving precedence to mone- 
tary targets rather than PSBR 
targets, hi the 1980 Budget 
speech, the Chancellor saad of 
the strategy: " At its heart: 4s a 
target for- steadily declining 
growth of the money supply. . . 
Bv 1983-84 the target rate .of 
growth of money supply win be 
reduced to around 6 per cent . . - 
We already have the means [i.e. 
control mechanisms] to meet our 
medium-term objectives." Mean- 
while the Financial Statement 
explained that unexpected 
events could lead to variations 
in the PSBR targets but “there 
would be no question of ; depart- 
ing from the .money supply 
policy which is essential -to the 
success of any anti-inflationary 

strategy-” . 

As Samuel Brittan points out. 
Friedman objected to the pre- 
cise mechanism of monetary 
control, but immediately sup- 
ported the broad strategy: r 
strongly approve of the general 
outlines of the monetary _ stra- 
tegy - - The key role assigned 
to targets for the PSBR on the 
other hand seems to me unwise. 
Even rhe Treasury’s eJCtp ““K 
loose formulation of the Psbk 
objectives was apparently top 
rigid for Friedman's taste. 

Now, the Chancellor is work- 
ing on 19S2-83 PSBR targets 
which maintain the downward 
trend incorporated in nte 
original strategy hut on mone- 
tary targets which are far 
higher and more opaque. My 
conclusion 'is that this repre- 


Analysis of 
crime " 

fVum Mr P.-W'ard . 

Sir.— A “breakdown of violent 
crime by race, -apart from being 
an incitement to violence, must 
seem to any competent statis- 
tician a rnosr arbitraty segmen- 
tation: whyTiot a breakdown by 
family income group, for 


seats political pragmatism — the 
PSBR numbers were consistent 
with a small reflation, while the 
monetary targets, if met. would 
have choked off the upswing- In 
any case, the present balance of 
PSBR Mid monetary targets 
surely runs directly counter to 
the original objectives of the 
strategy, and also counter to 
Friedman's reasons for support- 
ing it. 

Gavyn Davies, 

Simon and Coates. 

J London Wall Buildinpe, 

EC2. 


From Mr J. Perks. 

Sir, — On March 10 you quoted 
the Chancellor as saying — and 
not for the first time — that “it 
is intolerable for people to be 
permanently condemned to pay 
tax on gains - - . that only exist 
on paps - ." 

The word “permanently" is 
superfluous, but having yet 
again accepted the iniquity of 
the " rituation, he once more 
retreats behind some unspeci- 
fied “ practical difficulties." 

Many assets held in 1995 
were revalued at that date. Is 
it really beyond the wnt of the 
Treasury to establish a factor 
to be applied to those values 
before the calculation of CGT? 
J. -L. Perks. 

Heath Rock. Beacon Lane. 
Hesvoall. Wirnri, Merseyside. 


From the National Chairman, 
Association Independent 
Businesses 

Sir — WhiJe I congratulate 
the Chancellor on the overall 
strategy of his Budget I believe 
that he has missed a valuable 
opportunity to assist in meeting 
the dire need for equity capital 
in unquoted companies. While 
welcoming his announcement 
that the tax relief for invest- 
ment under the business start 
up scheme is to be increased, 
I believe that he has failed to 
give the necessary encourage- 
ment for extra equity participa- 
tion by not . extending the 
scheme to cover the purchase of 
shares in all unquoted United 
Kingdom resident trades, re- 


example, or number of 0*levels 
(or even age and sex for Press 
appeal)? 

Such analyses could not of 
course be made, given lhe highly 
suspect and unscientific nature 
of the source information. 
Astonishingly, figures are based 
on (be impressions of victims, 
not verified date from arrests 
(or, better still, convictions). 


gardless of the age ■ of the 
company. 

. At the present time there are 
many such businesses which are 
finding great difficulty m 
surviving largely because of the 
high interest they have to pay 
on borrowed money.; While 
these rates are now slowly fac- 
ing the danger of failure re- 
mains for a significant propor- 
tion of smaller - firms which 
cannot service or repay their 
loans. 

If potentially sound estab- 
lished businesses were able to 
reduce their bank borrowing by 
the proceeds of the issue of 
their own shares many which 
are downed would survive and 
business expansion. . could pro- 
ceed. In the longer term tins 
-would lead . to an increase in 
productive capacity and to the 
alleviation of unemployment 
Brian Kingham, 

Troubray House, 

108, Weston Street S-E.I. 


From the- Leader, 

Wirrall Borough Council 
Liberal Group 

Sir, — I wonder whether 
industrialists " will feel as 
pleased with the Government’s 
financial policy when they 
receive (shortly) their local 
rate demands. 

Here in Wirral, . where the 
council ha$ consistently 
adhered to guidelines laid down 
by successive Governments, this 
year, despite cuts in council 
expenditure in real terms, the 
district element of the rates will 
go up by 14p or 12.33 per cent. 
Apart from the impact of infla- 
tion. of that rise no less than 
lip is attributable to cuts in 
Government graqts to our 
council, even though we are a 
special development area with 
very high- unemployment. 

In this way much of the 
money the Chancellor purports 
in his Budget to have “given" 
back to industry, will in fact 
be clawed back by the Govern- 
ment through the rates system, 
which the Prime Minister her- 
self has so severely criticised 
especially for its. impact on 
industry. ... 

(Councillor) Gordon C. Lindsay 
25 Howbeck Road, Orton, . . 
Birkenhead, Merseyside. 


The Assistant Commissioner's 
disingenuous defence of' the 
decision to publish this, spurious 
material, as carefully docu- 
mented in your columns (March 
11). highlights the very question 
he was seeking to avoid— that of 
motive. 

E. Peter Ward. 

Trio..GoWto» Road, 

South Godsione, Surrey 



Support for pipeline 
projects . 

From the Chairman, 
International Management .and 
Engineering Group. ■ ■ 

Sir,— The article (March 12) 
from your representative :.in 
Ankara raises once again the 
problem ' of -proper ' support in 
this country for major pipeline 
projects.,. 

Our company prepared three 
detailed studies in the years 
1967-71 covering Iranian natural 
gas all the way -to Munich, 
crude oil export' pipeline and' 
port facilities 'from . southern 
Iran to Eskanderun and the 
export of Iranian natural gas 
to Europe via- a liquefaction 
plant at Eskanderun. We were 
also involved as advisers to the 
National Iranian Oil Company 
on the revived crude oil tine 
proposed in 1975 by a Franco- 
American consortium. 

It is disappointing that now 
these giant development plans 
are being realised, that British 
contractors and suppliers will 
not be able to participate, 
except in a very minor capa : 
city. The same thing was true 
on the Suea-Me diterra ne an pipe- 
line: this was invented and 
engineered by British engineers 
but due to lack of backing by 
the British Government at the 
time, the ultimate construction 
and supply work was almost 
entirely, confined io European 
companies. 

Again, the Iranian gas trans- 
mission project to" Russia, which 
collapsed with the arrival of 
Khomeini, was also ignored 16 
a very large measure by British 
industry; with the notable 
exception of the unsuccessful 
attempt by GEC to obtain lhe 
turbo-compressor order, not one 
British contractor applied to 
qualify for this scheme. Again, 
British engineers were respon- 
sible for the basic concept of 
design and the engineering 
management. 

' In the case of the Iran-Turkey 
lines, this is air the 'more dis- 
appointing when one remember? 
that British diplomacy was be: 
hind the original Saadabad Pact 
In 1921 between Iran and 
Afghanistan and which ulti- 
mately led to the Baghdad Pact 
In J9»4. This was foHowed by 
Cento in 1956 and finally the 
RCD (Regional Council for 
Development) in 1962 which 
attempted to ‘create strong 
economic ties between Turkey, 
Iran and Pakistan. 

It would seem that in this 
instance trade does not follow 
successful diplomacy. 

I. J. Bowler. 

71, Queenstcay, V2. 


Dtmc a in'.mjr.-rj 


“Whath2ppraecfv^ 
■aMddhave'andcipated. • 

The very week my compam - moved to 
C^fcrai Lancashire, -we obtained a huge 
order for a product called FAM-3d 

{It's used to aid die control of foot-and- 
mouth disease, which that same -week had 
broken out on the Isle of Wight.) 

Bortunately; Because the Development 
CwpoadoaHaddcaic theirjob properly, we 
were able to do ours. 

Fbrl4 day^vw worked rannd the dodc 
Thankful!); our new iactory paved 


much more efficient than our old one.- 
(The Development Corporation had helped 
Usplanitth3tyi'ay.) 

Wfc also appreciated Being much doser 
to the motorway network. (Wre now- just 
3 minutes from the Mfi.) 

And when we finally had time to look 
around, to found die new tuwn was as 
good: a place to live io, as it 'was to work in. 

Ia fact, after that first frantic fortnight, 
there was only one thing I regretted, about 
our move tQ C entral L am-ashirf, 

■WesboaHbavc 


- Most bnsmessmen who relocate in 
Central Lancashire N H' Ibwil find life issn 
much easier, rhev wish thcvhadmadcAg 
more y ears before . 

Phon e Bill M cNaKour Commerrtgj 
Director, f or more details of factories and, 
warehouses. 

Central Lancashire 

BRITAIN'S BIGGEST NEW TOWN 




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20 


Financial Times Wednesday Manch'i.17 19S2 


and Markets 


UK COMPANY NEWS 


Guinness Peat £13m net 
deficit after U.S. losses 


LOSSES of £4.9m on animal fats 
trading in Chicago, together with 
rationalisation and closure losses 
have combined to produce a total 
net deficit of £13.48m for 
Guinness Peat Group, the com- 
modity trading, insurance brok- 
ing and merchant banking con- 
cern. for the first half of 1981/82. 

The group — which has been 
engaged in pruning its activities 
since 1980— also disclosed yester- 
day that it was selling Its remain- 
ing 30 per cent holding in United 
International, the international 
financial information company, to 
existing shareholders and execu- 
tives. The disposal will give tfte 
group a book profit of about 
'£S.5m and return more than 
£lSm in cash which Guinness had 
invested In or advanced to 
Unitel. 

The directors report that the 
group's trading results for the 
second half will be better. "The 
strength of the continuing busi- 
nesses and the accelerating 
reduction in our borrowings will 
allow us to plan for a return to 
more normal profitability " in the 
current year, they state. 

They say that the Chicago 
losses are now fully worked 
through. The rest of the group's 
commodity trading in the U.S. is 
developing satisfactorily. Overall 
commodity trading, however, was 
affected by the continuing 
recession noted in the second 
half, of last year. 

Apart from commodities the 
group's continuing activities hid 
a fairly good half year and ihey 
nomially return larger profits in 
the second half. Guinness Mahon. . 
the banking subsidiary, and 
Fenchurch, the insurance brok- 
ing group, are having record 
years, the directors state. 


HIGHLIGHTS 


At the pre-tax level there was 
a loss of £7.39m in the first half, 
compared with . a profit of 
£3.55xn. In addition la the loss 
of rhe Chicago-- animal fats 
trading venture the ' pre-tax 
result reflect losses of discon- 
tinued activities of £1.64m. 
Profits of continuing activities 
showed a drop from £6. 27m to 
£2. 19m, reflecting a fall from 
£4.91m to £247,000 in commodity 
profits. For the whole of I9S0-S1 
group pre-tax profits were 
£2.79m, after a loss of £4m on 
Chicago fats trading. 

After tax and minorities and 
taking in the banking profit 
of £1.15m (£l.lmj, there is an 
attributable loss of • £S.75m, 
against a profit of £2.62m, before . 
allowing for extraordinary hems 
of £4.73m. These comprise lasses 
and provisions of‘-.£7.29m in 
relation ' to the current 
programme of rationalisation 
consolidation and disposals, 


Shortfall 
at Trade 
Indemnity 

PROFITS of Trade Indemnity 
fell from £3.57m to £1.97ra in 
1951, but the director say this 
credit insurance company has 
placed ltscir in a strong position 
to weather the recession. 

Thev point out that, like 
Lloyds of London, the company 
operates on a three-year under- 
writing accounts system. The 
profit shortfall new reported, 
therefore, reflects the beginning 
oF the recession in 1979. 

The decline was predicted by 
Mr F. R. Dugdaie. chairman, in 
his last annual statement, and 
a larger than normal balance of 
more than £3m was carried 
forward in 1980. For 19S1 this 
has been increased to almost 
£4m. 

The final dividend per 25p 
share is 4.55p net, raising the 
total payment from 6.34p to 
6.915p, an increase of 9 per cent 

McLaughlin 
& Harvey 

Following a marginal increase 
at midway from £557.000 to 
investments that goes back more . £603,000, pre-tax profits of USM 



Lex studies the latest news from Guinness Peat where the 
profit and loss account has' moved Into a £13 im loss at the 
attributable level for the first half. Guinness is passing the 
interim dividend but the sale of Unitel, partly to Exco, is 
the first step towards a firmer footing. The column then moves 
on to examine the implications of BAT's agreed tender offer 
for the share capital of Chicago-based department store group, 
Marshall Field, which values the U.S. retailer at $310nu Brooke 
Bond came out with its interim figures yesterday and despite 
an array of acquisitions and disposals the pre-tax level is £lm 
lower at £18.9m and there is little hope that the full year will 
now be able to record an advance. Finally the column looks 
at the results from IMI where profits are £4.4m lower at 
£23Bm, and that probably looks better than the underlying 
trend. 


partially offset by a profit of 
£2.56m on the sale of shares in 
Lin food. . . 

Guinness is not paying an 
Interim dividend — the total for 
1950-81 was 4p. 

The directors say that the 
group is engaged in reversing 
“ a- dispersion of efforts and 


than five years." The reversal 
now being accelerated will bring 
funds employed and borrowings 
well dawn during the ccming 
months and improve net cash 
flow by reducing interest 
charges. 

The results announced take 
into account as far as possible 
the Costs of closures and 
withdrawals. In several cases 
the return to the group of funds 
employed on those areas can 
only be. completed in the ccming 
months' and reflected in the 
annual report 

See Lex 


Leisure Inds. joining USM 


Leisure Industries, a toy manu- 
facturing company that has 
specialised recently in the pro- 
duction of amateur snooker and 
pool tables, is coming to the 
Unlisted Securities Market by 
way of a placing of 754.362. 
ordinary shares, 39 per cent of 
those issued,- at 120p per share. 

At the same time, 300.000 12}- 
per cent preference shares of £1 
are being placed privately at par. 

AH the shares are being sold 
by. existing shareholders. Mettoy 
is reducing its stake from 25.5 
per cent lo 2.55 per cent and 
Midland Bank Industrial Finance 
is declining from 20 per cent lo 
5 per cent. 

The family of Mr Leopold 
Holzcr, the chairman, is selling 
156,191 preference shares. 

In the year to March 31 3981, 


sales of £4.49m were composed of 
£2. 19m from “ Pot Black ” ~ 
snooker and pool tables, £1.13m 
from "Toy Works" junior 
snooker and pool, tables and 
£1.16m from other “ Toy Works " 
and “ Oak Leaf " .products. . . 

Total group turnover for the. 
current -year is expected to ex- 
ceed £5.2m and the directors fore- 
cast . a profit of £540,000. - A : 
dividend of 2.5p in respect nf 
1931-82 is to be recommended. If 
the company had been public for 
the full year, a total of. 5p might" 
have been paid. 

Net tangible assets at Decem- 
ber 31 1981 amounted to £l.S4m. 
By the end of the current year, 
the directors expect assets per 
ordinary share to amount to 68p. 

The placing is being made by 
Samuel Montagu and brokers are 
Pan mu re Gordon. 


• comment 

The key question about Leisure 
Industries is whether the current 
snooker craze will have some 
staying power. Should it be com- 
pared with tennis, as the direc- 
tors believe, or with video 
games? Certainly, the endorse- 
ment by Steve Davis, world 
snooker' champion, is a coup 
and .it is interesting that more 
than half of sales- go through 
the' mail order trade. The toy 
business is, of course, very 
seasonal and an August balance 
sheet would not look as strong 
as the December one. Still, the 
group looks adequately financed. 
At the -placing price, the fully 
taxed p/e on the forecast profit 
is nearly 11 and the notional 
yield- Is -nearly 6 per cent 


stock McLaughlin and Harvey, 
finished 1981 ahead at £1.32m, 
against a previous £l-2m. Turn- 
over slipped to £46.2m. com- 
pared with £46.3 m. 

After a tax charge of £222.000 
(£603,000 credit) earnings per 
share 'are shown to be well down 
at 27.3p (44.9p). but the divi- 
dend is increased - to 5.75p 
(5J25p) net with- a final of 3.95p. 


BOARD MEETINGS 

The following companies have notified 
dates of board maeMrv^cs lo :iic Slock 
Exchange. Such meeings are usually 
held for she purpose of consider. ng 
dividends. Official indications ere nor 
available m to whether dividends are 
interims or finals and the subdivisons 
shown below ere based mainly on last 
year's timetable. 

TODAY 

Interim: Lawtex. 

Finals: Britannia Arrow. Brrtannc 
Assurance, City and Commercial Invest- 
ment Trust. WJFham Coll.ns, Corah. 
J. Hewitt (Fenton). John l. Jacobs, 
Johnson Group Clean err. Lex Service, 
Hugh Mack ay. Thomas Tilling. Turner 
and NowaM, United Stales Debenture 
Corporation. 

FUTURE DATES 

Interim®—- 

Glaxo : Apr 5 

Habitat Modiercare- Mir 29 

Halstead (James) ' Mar 29 

Mills rrd A'lon Internal!. . .. Mar 19 
Minerals and Resources Cpn. Mar 19 
Ulster Television Apr 2 

Finals— 

Eagle Star Marie 

Leyland Psuw and WaWpeper .. Mar 25 
Ocean Transport and Trading Mar 25 
Oliver (George) (Footwear)... Mar *9 

Senior Engineering Apr 6 

Stmth and Nephew Mar 23 

Squirrel Horn ..„ Mar 22 

Telephone Rentals Apr 38 


IN increasing its pre-tax profits 
by 12.58 per cent rrom £lOB2m 
lo £l2.!Sm, J. Bibby and Sons 
achieved record figures for the 
sixth consecutive year, says Hr 
Leslie Young, the chairman. 

Turnover of this industrial 
and agricultural group rose from 
£lS9.92m to £204 .59m, an 
increase of 7.73 per cent, in the 
53 weeks to January 2, 1982. The 
final dividend is raised from 
4B25p to (Lip, which pushes up 
the total from 7.l25p to 8fip net, 
an increase of 19.3 per cent. A 
one-for-two scrip issue is pro- 
posed. 

Mr Young say s he considers 
the year's result to be a highly 
satisfactory performance, par- 
ticularly having regard to the 
difficult trading climate in which 
the group operates. 

The industrial group produced 
a higher trading surplus, mainly 
arising from a significant 
improvement in the edible -oils 
division and further growth 
from the hospital and laboratory 
services division. Trading 
receipts of the new industrial 
services division, Fuxmanite 
International, have been 
included for only four weeks 
from the date- of acquisition. 

The agricultural group also 
produced a record level of trad- 
ing surplus, with a substantial 
improvement in profits coming 
from the feeds and seeds divi- 
sion. There was a major reduc- 
tion. however, at Farm Products, 
which Mr Young says “was the 
result of a swing from profit to 
a small loss in our turkey opera- 


tion due primarily to excep- 
tional adverse market conditions 
outside the company's control.” 

He says that during the year, 
a strong cash flow enabled the 
group to maintain its borrow- 
ings at a very low level and 
earn interest on short-term 
deposits. Looking ahead, he 
says the market in which Bibby 
operates will remain very com- 
petitive. He expeers a further 
improvement in profits during 
the year. 

Trading profits for the 53- 
week period advanced from 
£l().79m to £12.14m. and share 
of profits of associates was 
£40.000 against £32,000. Tax was 
higher at £2.82m (£2.59m). and 
after minority debits of £3,000 
(oil) and extraordinary debits 
of £59,000 (£132.000 credits), 
attributable profits were £9.3m- 
(£S.37m). After dividends of 
£2j26ra (£1.91 m), profits retained 
were £7.04m against £6J2Sm. 

Stated oaminps ner 50p share 
Improved from 31.87n to 36.SM/, 
and from 19.9Sp to 22.53p fully 
taxed. On a CCA basis, the 
earnings were 22.35p (24.6Sp). 

• comment 

With a 12.6 per cent profits 
rise J. Bibby and Sons kept com- 
fortably ahead of outside fore- ■ 
casts. The only blot was the 
turkey side, hit by over produc- 
tion in the industry and imparts. 
The loss here hit gains made in 
a tough market by feeds and 
seeds, the major profit contri- 
butor. This division lifted 


DIVIDENDS ANNOUNCED 


Current 


Date 

of 


Guinness Pent 

J. Bibby J J 

Bronx y-jg 

Brooke Bond Group int. 1.-5 
Charterhouse Petroleum O.o 

Ductile Steels int 2,5 



IMI 

Johnstone's? LJ7 

McLaughlin and Harvey* 3.95 
Municipal Properties ... SJ25 

Peel Holdings int. 1 

Prlttard ffj 

Trade Indemnity 4.55 

Wolseley-Hughes ... mt. 4.S4 


payment payment 
int. nil — 


Correi Tntm 

spending for' 


May 7 
July 1 
May 18 
April 30 
June 15 
Slay 7 
April 27 
May B 


July 3Q 


div. 

2.75 

4.93 

0.79 

1J25 


year 

*5' 

I.M. 

nil — 

2.5 

4.5 
2.52 
5,75 
8.35- 


£5 

3.45 

7,5 

nil 

2.63 

4J4 

4.4 


4 

8.92 


Tntal- 
-■Jwf 
y«r 
■4.QP .. 
7.1* 
LQ8 ■' 
3*1. 
031 
4.5 ; 

AS_ 

7.5 -• 

2 i" 

+ r 
8JW 
.13.75 


Dividends shown pence per share net except where otherw ise! st ate d. 

•Equivalent after allowing for scrip.. issue. T On-. capltel. 
increased by rights and/or acquisition issues, t USM stock. _§ For 
six months. • 


market share through good 
buying and a little help front the 
severe weather, backed up by a 
policy of direct selling to 
farmers. An over-supplied 
market did not slop the edible 
oils side benefiting from recent 
cost cutting, its new crusher and 
good exports. But how long this 
activity con continue to buck 
the trend is in doubt. Even so 
the group believes iT has just 
about got its structural balance 
right to withstand any individual 
sector upsets. It also, expects to 
tip this balance a little further 


Charterhouse Petroleum at £10] 


Woodward (H.) 


Mar 23 


TAXABLE PROFITS oF Charter- 
house Petroleum, .the oil and gas 
exploration and production 
group, rose from £9.1m to 
HO.lm for 1981 as a result of 
higher interest received of 
£4.16m. against £1.5m which was 
for six months of the previous 
year. 

With petroleum revenue tax 
taking £1.4Sm more at £4.01m, 
and corporation tax absorbing 
£3.51 m (£3.53ra), this meant a 
fall in net nrofits from £3.04m to 
£2.58m and a drop in earnings 
per 25p share from 3.Sp Jo 3.23p. 
However, the final dividend, as 
forecast is Q.5p net. for a total 
payment of 0.75p (9.5 p for six 
months). 

Both turnover and profit from 
nil production before duty 
showed improvements for the 12 
months, wirh results of £17. 17m 
*£14.52^1) and £10.H6m (9.11m) 
respectively, but this was more 
than offset by supplementary 
petroleum duty £2.S3m (nil), 
higher exploration costs £1.02m 
(£266,000), associate company 
losses £92,000 (nil), and interest 
payahle £774.000 (£L25m). 

Trading profits, -therefore, fell 
-from £7.6m to £5-95m. 


(£417.000 gains) and the attribut- 
able balance finished £1.04m 
lower at E2.42m. On a CCA basis, 
pre-tax profits are shown at 
£S.57ra (£S.45m). 

The directors report that the 
group has taken significant steps 
during the year under review 
and the early part of -the current 
12 months to increase its commit- 
ment to exploration for oil and 
gas. In adition the group also 
became the operator for UK 
block 13/19. The development 
of this capacity, say the directors, 
will increase the scope of the 
company's operations and will 
ensure that it can fully utilise 
the resources of its technical 
staff and take advantage or new 
exploration opportunities as they 
arise. 

Further appraisal of the North 
Sea block 20/2 discovery, is 
scheduled to take place during 
the current year and. if success- 
ful, will contribute a substantial 
increase in crude oil reserves. 

The company has also been 
successful in its first overseas 
venture, obtaining a significant 
interest in a large offshore con- 
cession in, Abu Dhabi. 

.The company’s net ..acreage 



Extract from the Interim statement of the group 
for the six months to 31st December 1981 


Sales outside the group _ 

Group trading profit before interest 
Group profit before taxation 
Group profit after taxation 


1981 

£486,303,000 

£29,668,000 

£18,917^000 

£10,649,000 


1980 

£325,988,000 
£22,796,000 
£1 9,328,000 
£H, 372, 000 


Trading profit was ahead of the corresponding; 
period of last year both' in the UK and overseas. 
Exchange translation contributed £l.5m. Profits 
improved from trading, manufacturing and • 
distribution activities overseas, particularly in 


showed a net gain. Meat processing and retai ling 
in the UK continued to experience difficulties. 

Mallinson-Denny is included for the first .time 
and contributed a profit before tax despite the 
continuing adverse conditions in the industry. 


However, this was insufficient to cover the interest 
cost of the cash element of the acquisition. The 
group interest charge also' reflects higher rates 
worla-wide compared with the correspondin g 
period of last year.. 

The-group has announced a number of strategic 
dismvestmentsin the year to date which will have 
a beneficial effect on profitability- and gearing. In 
theTJK the MaUinson-Denny division is being 
restructured in order to improve future 
profitability. 


Interim Dividend 

The Directors have declared an interim dividend of 1.25p per share (the same rate as last year). This 
dividend will be.paid on 1st July-1982 to-shareholders on the register on 4th June 1982 in respect of the 
311,427,982 ordinary shares in issue (last year 306,465,057). 


Brooke Bond Group pic, Thames House, Queen Strcetll^LondonECiR 1DH 


Drooke-Bond Group pic is the parent of a group of companies in 
the United Kingdom and overseas engaged in the marketing and 
distribution of tea, coffee, meat and other food products; the 
import i rig, processing and distribution of timber and allied 
products; the operation of plantations and ranches; international 
commodity trading and specialist manufacture and services in 
the printing and micro- biological fields. 


© 


. Below the line, there were position increased from 14^78 
exchange losses of £166,000 net acres at the beginning of 

Grovebell back in profit 
and progress to continue 


1081 to 164.SSS net acres at March 
19S2. This acreage ties in areas 
□f proven hydrocarbon potential, 
the directors state, and greatly 
enhances the spread and quality 
of exploration prospects open to 

the company. 

• comment 

At current crude prices. Charter- 
house Petroleum's share or pro- 
duction from Thistle is of less 
interest than it might have been. 
It would, in any case, be 
unsurprising to find that flows 
in 19S2 were somewhat reduced 
by maintenance shutdowns 
(although the field has been 
producing at well above the 19S1 
average In the first two months). 
Cash balances of £30.7m at the 
year-end are still chasing invest- 
ment propositions, particularly 
now that CCP may fall to 
Tricentrol instead. Whatever the 
outcome, Charterhouse is press- 
ing on with its exploration 
programme at an accelerated 
rate, having spent four times as 
much in 19S1 as in the previous 
year, and would also like to buy 
some more interests in Block 
20/2, where its existing acreage 
has- -seen - significant discovery. 
Up 6p to 7 p — probably reflecting 
the existence of a competitive 
bid for CCP— the shares yield 1$ 
per cenL 


before half-time vritfii -another 
acquisition in the . industrial ser- 
vices area '. Overall margins 
remain a problem but volumes 
are satisfactory, and growth in 
the. current ytw is' likely -to 
come from the industrial -gtdo. 
However, a positive recovery bv 
turkeys is in sight- WWl* full 
contribution from FUtitawriie 
and a similar advance elsewhere 
£l4.5ra pre-tax could easily be 
achieved putting, the July-taxed 
prospective p/e, after yesterday's 
lQp price.-rlse to 340p, at around 
12 . 

Two Counties 
Radio profit 
at £50,616 

For the year ended September 
30 1981, Two Counties Radio, 
commercial broadcasting station, 
serving Bournemouth and the 
surrounding area, boosted turn- 
over from £54,770 to £797,239. 
oiid produced a £207.744 turn- 
round to pre-tax profits of 
£50.616, in its first full year of 
operation. . . 

Lord Stokes, chairman, tells 
members in his annual ' review 
that tbe company - anticipates 
that the next 12 months "will 
see us continue -to - gather 
strength.” 

.He explains that new. radio 
stations in general have- not 
shown a profit until the third 
year in operation. Coupled with 
the depressed economic condi- 
tions be feels the results are pot 
only satisfactory. " but . very 
encouraging for the future. 1 ' 

Lord Stokes says that as the 
company lias not yet recovered 
all its pre-broadcasting losses 
the directors are not in a posi- 
tion to recommend any dividend 
payment. 

Balance -sheet at the year end 
shows shareholders’ funds of 
£152,187- (£100.623), fixed assets 
of £421223 (£401.605). and net 
current liabilities of £19,036 
(£51,930). 


£ 


oiL. 




A RETURN to profitability has 
been achieved by Grovebell 
Group in' Htel and the directors 
believe that the improving trend 
will be maintained. Pre-tax 
profit for the year was £64,010, 
against a £615, 27S deficit 
previously, and this follows a. 
reduction in first-half losses 
before tax. from £410,353 to 
£15,403. 

The directors explain, how- 
ever, that the Companies Act 
19S0, prevents dividend distribu- 
tions while there is a deficiency 
on the profit and loss account 
und in consequence, Grovebell 
ha* not prid the dividend on the 
k per cent cumulative preference 
s’lares sir.ee ihe payment made 
on March 31 1980. 

they add that the company is. 
similarly preceded from paying 
a dividend on the ..ordinary 
shares for the year. -The last 
ordinary payment was an interim 
of. 0.5p net per - 5p share in 
respect of 1979. 

The company’s garage sub- 
sidiaries, taken as a whole, have 
produce a profit for the year, 
against a loss previously, white 
the subsidiary engaged in. the 
confirming of imports and 
exports contributed significantly 
higher profits. 


Turnover of the continuing 
group increased from £ 9.35m to 
£12.S7m. Profits rose - from 
£219,750 to £411,564. Last time, 
those companies closed or sold 
contributed a further £lm to 
turnover and made losses of 
£299,343. 

Interest charges decreased 
from £535.683 to £347,554. Tax 
credits were lower at £6,087 
(£52.745) and basic earnings per 
share ore shown as 0.39p (£19.34p 
deficit). There was also an 
extraordinary credit of £35,075 
in 19S0. 


Gas & Oil 
Acreage back 
in the black 

Profits, after tax, of Gas and 
Oil Acreage, exploration and pro- 
duction concern, amounted to 
£261,000 for 1981.. This is com- 
pared with looses of £186,000 in 
the first half, and £373.000 for 
the whole of the previous year. 

In the North Sea the floating 
production platform and offshore 
loading buoy in the Buchan 
F ! eTd were commissioned in May 
of last year, and up lo the end 
of 19S1 production had totalled 
6.4m barrels, of which the com- 
pany's share was 154,000 barrets, 
the directors state. 

Also in the North Sea . the 
company tars recently completed 
drilling the first well on Block 
I6/21B which has confirmed an 
extension of rhe Balmoral Field 
into the company's licence area. 

A subdivision of the 20p 
shares into four, of 5p is pro- 
posed. There is no dividend for 
the year. 

Yearlings up 

The interest rate- for this 
week's issue of local authority 
bonds is 13| per cent, up one 
eighth of a percentage point 
from last week and. compares 
with 122 per cent a year ago. 
The bonds are issued at par and 
-are redeemable on March 23 
1983. 

A full list of issues will be 
published in tomorrow's edition. 


SPAIN 

Price 

March 16 % -For— 

Banco Bilbao 348 

Banco Comral 352 

Banco Enieror 302 . 

Banco Hispana : 323 ‘ 

Banco I rrd. Cat *10 

Banco Santander 356 

Banco Urqurjo 215 —6 

Banco Vizcaya 368 

Banco Zaragoza '.... 2A5 

Dragjdoi 152 —4 

Espanola Zinc 61 

Facsa 60.2 +1 

Gal. Preciadoa 42.5 +1 

H'drola 63J -0.2 

Itwrdnaro 52.2 +0.7 

Patrol oo« 95 +2 

PotroUbar 99 +1 

SofaRea 13 

Telefonica 72 —.0.5 

Union Elect 64 -M 


Thelnii 


theCi 


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English and New York Trust — 
Standard Life Assurance pur- 
chased an additional' SOW) 00 -ord 
Block units bringing total bolding 
to 3.287,304 units (S.2 per cent). 


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This advertisement is issued in compliance with the 
requirenients of the Council of The Stock Exchange 

CANDECCA RESOURCES 

p.l.c. 

Authorised share capital : 

32,500,000 Ordinary shares of lOp each 

Issued share capital: 

29,131,103 Ordinary shares of lOp each 

Application has been made for the grant of permission to. deal in 

the Unlisted Securities Market' on the Stock Exchange in th6 
Ordinary shares of the Company. It is emphasised that no appii- 

cation has been madeVfof these securities to be.- admitted to 
listing. 

Particulars relating to- the Company are available in the ^xtel 
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Panmure Gordon & Co., 
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..-w&L-i - Financial: Qlme& J33tuisdag->Marp.li- .i&.'.iqrsl . 


i 


Financial Times Wednesday March 17 1982 

Companies and Markets 


21 


UK COMPANY NEWS 


Brooke Bond lower as woiseiey 

• , . _ _ , Hughes 

interest charges treble up 53% 


EMI behind despite 
better second half 


WITH interest chaises more 
than trebling from £3.47m to 
ao.r5jn. pre-tax profits at Brooke 
Bond Group, formerly Brooke 
Bond Liebig, fell from £19.33m 
m flS,92m in the six months to 
December 31. 1981. 

Sales of this packer and 
distributor of tea, coffee °tw 1 
meat rose from £325.99m to 
£486.3m. 

The Interim dividend is 
unchanged w 1.25p-— last year's 
total was 3.905p paid from 
pre-tax profits of £41.75m. 

The directors say trading 
profit was ahead or the 
corresponding period of last 
year, both in the UK and over- 
seas. Exchange translation! 


contributed £L5m. profits 

improved from trading, manu- 
facturing and distribution 
activities overseas, particularly 
in Australia and India. 

Plantations and ranches 
showed a net gam. Meat process- 
ing and retailing- in the UK 
continued to experience 

difficulties. Malliosoa-Denny is 
included for the first time and 
contributed a profit before tax 
despite the rorrtizming adverse 
conditions in the industry. 

Tbey say. however, that this 
was insufficient to cover interest 
cost of the cash element of the 
acquisition. Interest charges also 
reflect higher rates worldwide. 

The group has announced a 
□umber of disinvestments in the 


year to-date, which are reflected 
in the figure for extraordinary 
items, and which will have a 
beneficial effect on profitability 
and gearing. In the UK the 
Maliinson-Denny division is 
being restructured in order to 
improve future profit ability. 

Trading profit for the six 
months was up from £22.Sm to 
£29.67m, and there was a tax 
charge of £827m against £7. 96m, 
leaving flO.fiSm (£lL37m), After 
deducting minorities of £818,000 
(£374,000) and adding extra- 
ordinary items of £l-41m 
(deduct £451,000), attributable 
profits came out at £ 11.24m 
compared with £l0.52m. All 
comparisons have been re-slated. 

See'Lex 


Exco boosts profits by 78% 


Exco International, the fast- 
expanding money broking group 
which came to the London Stock 
Market in spectacular fashion 
last November, reports a “highly 
successful'' year in 1981. with 
pre-tax profils up 75 per cent 
and net earnings showing a 100 
per cent jump. 

The group— whose offer for 
sale was oversubscribed 62* 
times — also announced yesterday 
that it was purchasing a 13.8 per 
cent shareholding in Unitel 
International from Guinness 
Peat Group, lifting its Stake in 
the international financial infor- 
mation company to 40.0 per cent. 
The purchase price is US$1 0.4m 
(£5.72m). which will be met by 
a placing erf new Exco shares. 

Turnover of Exco in 1981 
advanced by 50 per cent to 
£36.57m and' profits, before tax, 
showed an increase from £5.99m 
to £10.65m of which £5.65m 
accrued in the second six 
months. Providing for tax of 
£5.62m (£3.27m) and minori- 
ties, net earnings came through 
ahead from. £2.1 6m to £4. 32m. 
Fully diluted earnings per lOp 
share arc stated at 12-79p 
(7.95p). 


The directors report that 
income for January and Feb- 
ruary 19S2 “indicates improved 
levels of trading " over the same 
period last year and they con- 
tinue to view the future with 
confidence. 

The dividend is 2.5p net per 
share, as forecast in the pros- 
pectus. Tbe directors said at the 
time that had the company been 
listed throughout the year they 
would have recommended a total 
dividend of 4.5p net. 

On the increased holding In 
Unitel the directors say they 
welcome the opportunity of 
strengthening links with a com- 
pany .which they believe has 
“significant potential for 
growth.” 

• comment 

At first glance, Exco's prelimin- 
ary figures are slightly dis- 
appointing, second half profitE 
only mirroring those of the first. 
But the second half in money 
broking is traditionally weaker 
and there is no contribution here 
from last October's Telerate 
acquisition. The 16J5 p/e indi- 
cates that hopes remain very 


high and so far, tbe money 
broking side is growing at 20 
per cent overall. In London, 
which accounts for slightly less 
than half of the business, the 
new negotiated commission 
structure is enabling the group 
to pick up volume but at the 
expense of margins. In New 
York, the start-up of the offshore 
banking market and the increas- 
ing participation of regional 
banks in money markets is 
creating a spurt of growth while 
momentum in the Far East is 
being maintained. The real 
excitement is over Telerate, 
which is struggling to meet 
strong demand for its quotation 
system. Exco would have liked 
to raise its stake even higher 
but that would have meant con- 
solidating a S40m loan that would 
have overwhelmed the group's 
£12m of tangible equity. The 
two placings raise the public 
float of Exco shares by more than 
a quarter since the group's 
spectacular market debut last 
November, and the shares under- 
standably sagged Gp to 212p 
yesterday. 


Standard Life assets pass £4fen 


The total value of funds 
within Standard Life Assurance 
Company, Scotland’s largest life 
company, advanced by more 
than £600,000 to £3.55bn in the 
year to November 15 1981. Total 
assets of the company passed the 
£4bn mark rising from £3.56bn 
to £4.05bn over the year. 

Last -year the company 
invested £107ra of its new money 
from the UK and Republic of 
Ireland in fixed-interest securi- 
ties. of which around £20m was 
to cover Guaranteed Income 
Bond business in Ireland. 


Host of the UK fixed-interest 
investment was in the gilt 
market. 

The company also invested 
£101m of UK new money in 
equities of which around £40m 
was overseas. A further £43m 
was invested in property, bring- 
ing the total value of the 
property portfolio in the UK and 
Republic of Ireland to £603m. 

Mr A. M. Hodge, in his chair- 
man's review, referred to the 
growth in the company's UK 
pension business. Total deposits 
in the pension managed funds 


rose £7m to £51tn, bringing the 
value of these funds at the year 
end to £354m. 

The group’s Canadian business 
improved last year. The bulk of 
investment in Canada has to be 
in fixed-interest securities to 
cover the liabilities and the fixed 
interest portfolio rose to 
CSU4bn. The equity port- 
folio amounted to 8320m and the 
property portfolio $292m. 

The group has been increasing 
its property investment sub- 
stantially over the past few years. 


ALTHOUGH IT has been a 
period of mixed fortunes at 
Wolscley-Hnghes, with parts of 
the group seeing a slight upturn 
in orders while others remain in 
deep recession, sales rose 19 per 
cent and pre-tax profits jumped 
hy 53 per cent, for the six months 
ended January 31 1982. 

With results evenly spread 
throughout the divisions, sales of 
this domestic heating, and 
plumbing distribution, engineer- 
ing, agricultural concern 
amounted to £104.69m (£83- 05m) 
and the taxable surplus was 
£5-25m. against a previous 
£3.44ra. 

Mr J. Lancaster,, chairman, 
says there is unlikely to be any 
significant change in the group's 
fortunes until the economy starts 
to expand: meanwhile directors 
continue their efforts to prune 
all unprofitable activities. 

The interim dividend is 
increased from 4.4p to 4.84p net 
per 25p share — last year's final 
payment was 9.35p paid from 
pre-tax profits of £8. 02m. 

Sales included exports of 
£6.6m (£5.5Smj for the six 

months and the pre-tax figure 
was after Interest of £180,000, 
compared with £425,1)00. 

After tax of £1.92m <£1.79m) 
and minority interests. £3,000 
(£28.000). the available balance 
was £&32m (£1.62m). Dividends 
will absorb £776,000 (£701,0001. 

Mr Lancaster attributes the 
improved results overall to a 
better export performance, an 
improvement in home demand 
for farm machinery, and last 
year's cost savings throughout 
tbe group. 

• comment 

Wolseley-Hnghes* shares had 
been gaining in advance of 
yesterday’s news. From 265p last 
Novemher. they climbed to a 
record 37Dp before the announce- 
ment yesterday and gained a 
further 4p to finish at 374p. This 
price is anticipating continued 
recovery from WH — so far the 
improvement is thanks to loss 
elimination, cost-cutting, and 
improved export earnings. 
Volume has improved by 10 per 
cent iit domestic heating and 
plumbing distribution, its main 
business, bnt margins have yet 
to rebound. The company reports 
some recovery in demand in 
farm machinery which indicates 
that de-stocklng in this sector 
may be over. This division has 
returned to profits and WH says 
only one or two small loss- 
makers remain in the group. 
Assuming a doubling of the 
interim results, the shares stand 
on a prospective fully taxed p/e 
of around 1L5. The prospective 
yield is under 6 per cent, if the 
final dividend is lifted in line 
with the interim. Tbe shares 
have a net asset backing per 
share of more than 342p. 


SECOND HALF pre-tax profits 
of no, fabricated products, com- 
ponents group, increased from 
£11.14m to £13.61m, but for the 
whole of 1981 the figure finished 
£4.43m behind at £23.8 lm. 
External sales dropped to 
£532-5m, against a previous 
£62S.6m. 

The directors are recommend- 
ing an unchanged final dividend 
of 2,5p, however, maintaining the 
total at 4.5p net per 25p share. 

Increased profits were derived 
from activities in water heating, 
alloy tube, plastic pipe and 
fittings, radiator manufacture and 
servicing and fluid power in the 
US. the directors state. 

Eley sporting ammunition and 
IMI Rod and Wire did better 
than in 19S0. but neither traded 
on a satisfactory basis. IMI 
Titanium continued to grow 
although at a slower pace and 
was less profitable than the 
previous year. 


Tbe Australian. Marston. 
fitting, valves, refining and UK 
fluid power activities showed 
some decline, they say. There was 
a more serious deterioration in 
performance in copper tube and 
rolled metals, bat some improve- 
ment was evident towards the 
year-end on the tube side. 

Of total sales, the home figure 
fell from £3S0m to £327m, export 
sales were down to £11 4m 
f£I3am), and overseas sales 
declined from £ll4m to £91m. 

Profits for the year were after 
depreciation of £14m (£12. 45m) 
and subject to a tax charge of 
15.17m, against £5.69m. Minority 
interest amounted to £1.0Sm 
(£765,000). 

During 1981 the zip fastener 
companies became associates as 
part of the Opli Group, in which 
IMI has a 50 per cent interest. 
Figures for the year include the 
results of these companies up to 
the date they became associates. 


comprising sales of £lS.6m 
(£53.3m for full yearl. and pre- 
tax losses of £3m (£3.9m). 

The directors consider that the 
equity investment in Opti should 
be provided against in full 
because of continued trading 
difficulties and £5m has therefore 
been written off as an extra- 
ordinary Item. 

Extraordinary deBits for the 
year came to £5. 05m (£1.06m 
credit) and including a £635,000 
profit (£883.000 loss) in metal 
stocks after tax, the attributable 
balance came through £S.l8m 
behind at £15.3m (£23.49m). 
Dividends absorb £12.0Sm 
(£&39m). 

Excluding the extraordinary 
items, earnings per share arc 
7.9p (10.2p) and 5.9p (10.7p) 
including the same. 

On a current cost basis pre-tax 
figure is reduced to £6.3m 
(£7.7m>. 

See Lex 


Pittard results ‘encouraging’ 


A TURNROUND of more than 
£l.Sra has produced “encourag- 
ing" results at Pittard Group 
for 19S1. according to Mr Neil 
Wood, chairman. 

However, Mr Wood notes that 
the pre-tax. surplus of £I.13m 
would in normal times be “ in- 
adequate," on turnover of 
£18.16m (£l8.33m). Last year 
a deficit of £524,000 before tax 
was incurred. 

The final dividend of this 
leather manufacturer has been 
repealed at 2.625p, which holds 
the total at 4p. 

“We view prospects for 1982 
with more optimism. 1 ' says Mr 
Wood. “ and would expect 
profits to be higher than in 
1981." 

He adds that orders on band 
are materially better than they 
were this time last year. 
Although margins leave much 
to be desired, be is confident 
that tbey will improve. 

Mr Wood says that the turn- 


round was brought about by 
economy of production costs, 
lower interest charges, the re- 
duction of stock losses and 
favourable currency movements- 

The value of sterling has 
started to work in the com- 
pany's favour. Overseas sale? 
in the second half showed an 
increasing trend and accounted 
for 44 per cent of sales (42 per 
cent) for the 12 months. 

Pre-tax profits were struck 
after depreciation of £280,399 
(£296.513) and interest charges 
Of £481.366 (£626^40). Tax 
£108,472 (credit £586,781). 

There was an extraordinary 
credit last time of £413.767, 
which left attributable earnings 
of £479,148. At the attributable 
level this time earnings 
improved to £L02m. 

• comment 

Following a disastrous 1980. 
Pittard has resumed normal 


service as soon as possible. With 
the slump in hide prices bebind 
it, stock losses have been more 
than halved to about £500,000. 
Pittard sees its future chiefly in 
terms of the export market, and 
19S1 saw the new water re- 
pellent glove leather making a 
big impact in the U.S. golf glove 
market. This year is likely to 
see exports up to 50 peT cent 
of sales. The home market has 
been flat, but the company 
believes that customers' stocks 
are now at very low levels. 
Pittard is about to move onto 
treble shift working and is 
looking for a 10-15 per cent 
volume Increase this year, 
which can be sustained in pre- 
sent capacity. After the figures 
the price of this tightly held 
share gained 3p to reach 60p, 
equalling an eight-year high and 
yielding 10 per cent, with a p/e 
of 9. Pittard hopes in future 
to be able to increase dividends 
in line with inflation. 


Westwood chief gives warning 


Unless Westwood Dawes is 
successful in obtaining further 
orders soon. Mr Jeremy West- 
wood, chairman, tells members it 
is unlikely that a profit will be 
achieved for 1932 as a whole. 

He adds that unless there is 
some measure of reflation, pros- 
pects for the company "will be 
extremely bleak," and until some 
confidence is restored to the 
business sector, it will not be 
able to benefit from economies 
made. 

Should the situation be pro- 


longed “ your board will have to 
reconsider the company’s 
future.” be states. 

As reported on February 26, 
the company incurred a taxable 
loss of £166,893 for the Decem- 
ber 31, 1981 year, compared with 
a profit of just £91. There is 
again no dividend for this struc- 
tural and mechanical handling 
engineer— the last payment was 
a final of 1.5p in 1979. 

Mr Westwood says that trading 
was profitable in the last quarter 
of the year, and although this is 


continuing in the current year it 
is due mainly to a large contract 
secured last August. He explains 
that while the major benefit 
from this is still to come, general 
orders are irregular and no 
further large contract is yet in 
sight 

Balance sheet shows share- 
holders funds at £4R?.729 
(£550,542). and net current assets 
at £203.253 (£363,412). 

Meeting, Fedmore House, 
Pedmore, Stourbridge, on April 
8 . at 12.30 pm. 



Lombard 



Any amount from £500 upwards. 
Ready availability. 

Interest credited on every rate change. 

All interest will be credited without 
deduction of tax at source. 


Simply send your remittance with 
the application form completed. 

All acccounts are held in 
Sterling only. 


To: Lombard North Central PLC, Dept 289 
17 Bruton Street, London W1 A 3DH. 

Date: — — . 


14 Days Notice Deposit Account""? 
Application Form 


Please open a 14 Days Notice Deposit Account as follows- 

1. Amount (minimum£500) 

n cheque enclosed □ to follow (detaHsfaeiKiosadtener) 


2. Depositors name(s) 

Forename(s) and surname of account holder (of each holder if joint account) 


Mr/Mrs/Miss. 


Mr/Mrs/Miss. 


3. Address for correspondence. 


North Central 


PLC 

Banking Services 

A member of the National Westminster Bank Group 


Rates of interest 
will be shown 
every Friday on 
the Company 
News Page of 
this paper. 



Prom 

15 March 1982 
the Lombard 
14 Days Notice 
Deposit Rate 
is 



4 Existing or previous Lombard Deposit Account no. 


5. Bankers reference (Nameandaddress of presentbankeretowhomyoumay apply fora reference) 
Name of Bank . __ — _ — 


Address. 


Lombard North Central PLC. 
17Sruton'St,-LondbnWlA30H. . 

For details phone 01-409 3434 


6- Signing Instructions >' j 

I/Wfe, the undersigned, confirm the instruefionson this form and, On the case of joint holders by virtue of agreement I 

between ourselves), request a nd authorise yo u to pay any money, now or h eraafteretandiijg to the credit of the deposit ( 

account in my/our name(s)|nciudlngall Interest or income thereon to or to the order of: 1 

flttroiiBtauroRfy) 1 

□ myself □anyoheofus- □ both of us jointly □anytwoofus □allofustogether I 

/in lha paca nf Inin* Ai-i-miinteMn+hB HIlMjfuinnnSrtl/ni'nartioa inf hsuKMunt I 


and (in the case of Joint Accounts) to thesuryftring party or parties to the account 
Normal signature of each depositor 


t 


Bronx loses 
£882,938 £ 

in full year 

AS PREDICTED at the interim 
stage when taxable losses of 
£533.402 were made, Bronx 
Engineering Holdings showed 4 
pre-tax loss for the year to 
November 30 18S1. 

The taxable deficit reached 
£882,938, compared with pre* 
vious profits of £506,921 on 
turnover halved at £7.4Sm 
(£1454m). 

At half time turnover was 
£3 -94 m (£6.4Sm) and in his 
interim statement the chairman 
said that, provided the order 
intake improvement seen at that 
stage was maintained, he was 
hopeful of a return to profit in • 

19S2. 

When the interim dividend 
of 0.25p per share was paid it 
was stated that the final divi- 
dend would be dependent on 
the results for the year and the 
outlook for 19S2. In view of 
the return to profitability 
expected in JhP current finan- 
cial year the directors propose 
a final of 0.7Bp. bringing the . 
total to 1.04p (l.OSp). 

Losses per ordinary 10p share 
were stated at 6.51 p, compared 
with previous earnings of : 

12.9 6p. 

There was a loss, after tax 
and dividends, of £944.333. com- 
pared with profits of £1.49ra. 

The balance carried forward 
was lower at £l.S7m (£2.S2m). 

Johnstone’s 
Paints better 
than expected 

Better than forecast profits 
were shown at the taxable level 
by Johnstone's Paints for tbe 
year to November 28 19S1- The 
result was 41 per cent ahead at 
£1.62m, compared with £l.l5m. 

The forecast at the? time of the 
USM placing in October 19S1 was 
£1.55m. 

Turnover rose from £7.40m to 
£S.22m. The final dividend is 
1.765p — in line with the October __ 
1981 forecast 

Earnings per share were given . 
as lower at 8.53p i9.11p) 

The charge for taxation rose 
from X1S9.000 to £721,000. The 
directors point out that the 
comparative figure for 19S0 
includes the effect of releasing 
deferred taxation of £216,000 
relating to the change in stock 
relief. 

There was an extraordinary 
charge this time of £78.000, in 
connection with the placing on 
the USM. 

Retained profits emereged 
lower at £712,000, compared with 
£959,000. 

On a current cost basis the 
pre-tax profits came through at 
£1.48m and earnings per share 
at 7.19p. 


□ Place aticklnthls box Ifyou are not resident Inihe LUC 




SB ?S,«’’HT3-5sr riip?T!r*P ? ft* 5,5 <5 B 5 5 : t 






Essex 

Water Company 

The Hon. P.E. Brassey’s 
Statement to Stockholders 




The following is the Chairman’s Statement submitted al the 
Annual General Meeting on 16 Ik March, 1982 

Since my last Statement, there have a •nnmK’gr 

of developments of major significance both to 
Company and to the industry generally. One of the most 
important was die Monopolies ?»nH Mergers Commission’s 
Report on the water services supplied by the Scvem-Trcnt 
Water Authority and two associated Water Companies. 
This Report, together with the publicity given, to the level 
of increases in charges throughout the industry in April, 
1981 , focussed considerable public attention on the water 
industry. This Company has taken careful note of 'all these 
developments and has made, and will continue to make, 
strenuous efforts to effect economies where these can be 
made without detriment to the standard of service. 

Control of Expenditure 

I am happy to report that the Company’s overall 
expenditure in 1981 was contained well within the amount 
thatwas anticipated when the budget was set. Nevertheless, 
operating expenditure rose by a little over 8% when 
compared with 1980. and this percentage compares 
favourably with the 12% increase in prices generally. 

A policy of voluntary severance and early retirement 
for employees introduced during the year assisted the 
Company in achieving its aims of controlling recurring 
expenditure. The terms of the scheme were in accordance 
■with the Employment Security and Severance Scheme for 
the Water Service and the total cost to the Company in 
3981 was £317,000. The operation of the Scheme was a 
significant factor in enabling a reduction of over 50 in the 
work force during 1981 . The polio* will be continued so 
long as it is of benefit both to the Company and its 
employees. 

Water Rates and Charges 

Charges are being increased by a relatively mcfdest 
amount in April. A number of factors have made this 
possible, one of which is the continued attention the 
Company is giving to improving efficiency in the longer 
term. 

It is nearly a year since the Company extended for all 
customers, including domestic customers, the option to 
have their supply metered and to pay on the basis of 
quantity taken. Commercial customers have had at least 
eighteen months to consider the benefits of installing a 
meter and have received several reminders from the 
Company. During 1981 some 300 meters were fitted to 
previously unmeasured supplies. In view of the potential 
savings to customers with larger commercial premises 
where water consumption is low and rateable value high, 
the publicity given by the Company to the meter option 
has generated surprisingly little interest. 

Existing arrangements for billing sewerage and other 
charges for the Anglian and Thames Water Authorities 
continue. Water charges accounts are also prepared for a 
neighbouring water company and plans are well advanced 
for similar services to be provided lor a second water 
company. 

Water Consumption 

The total volume of water put into the supply in 1981 
was approximatdy 4 % below the level of the previous 
year. Almost all of this decrease was the result of a 
reduction in supplies to industrial and other metered 
customers, whose total consumption Jell by over 10% 
when compared to 1980. This was the second consecutive 
year that a decline in metered consumption was recorded. r 

Prediction of future metered consumption is most ,/ 
difficult. If, however, the present decline continues 
and if this decline is accompanied by a significant • 
number of unmeasured commercial customers J rV/ / 

opting to install a water meter, the Company’s 
current charging base will be eroded. If the 
charging base is significandy eroded in the short — " 
term, this may well have an adverse effect on the 
^Ievel of the Company’s charges in the future. 


Major Capital Projects 

During 1981 the Company spent over £5,000,000 on 
capital projects. The major project in. p rogress during the 
-year was the construction, of additional rapid filters at 
Hanningfield which will enable output to be increased by 
12 million gallons per day. In addition, over £800,000 was 
spent on extending and i m p ro ving the network of 
distribution and trunk mains: The Mid Essex divisional 
office and depot were completed at the end of 1981, 
enabling the Company to provide much needed 
accommodation and release leased premises. 

Work on the South Essex divisional office was 
completed in early January, 1982. The division has now 
moved out of Head Office enabling a Temporary office 
'building to be demolished as required by the local 

authority. 

Raising of Finance 

During the year the Company obtained a new 
Capital Powers Order, which increased the combined 
authorised capital and loan stock horn £80,000,000 to 
£ 100 , 000 , 000 . 

An issue of £6,000,000 10% Redeemable Preference 
Stock, 1985 was made on 25th November, 1981, to 
provide funds to redeem at par £500,000 3.5% (formerly 
5%) Redeemable Preference Stock, 1980/81, £200,000 
4'A To Redeemable Debenture Stock, 1980/81 and 
£4,000,000 9% Redeemable Preference Stock, 1982 as 
well as to provide funds for future capital expenditure. 

The issue was by tender and an average price of £101.66 
per £100 of stock was obtained. 

The Company also arranged leasing contracts to 
finance the purchase of a number of smaller items of 
equipment. 

Directors and Staff 

It is with great regret Irecord the death of Mr. Arthur 
W. White on 26th January, 1982. Mr. White’s connection 
with the Company spanned more than fifty years, firstly as 
Financial Consultant and then as a Director fr om 1962. 

He was elected Chairman in 1 966, a position which he 
held until January last year when he relinquished his 
Chairmanship and became President of the Company, a 
post which reflected the high esteem, in which he was held. 
He will be greatly missed not only by Ids fellow Directors, 
but also by the staff whose interests were of particular 
concern to him. 

I am sure you would wish to join me in 
congratulating Mr. Simon Ashton on his having been 
appointed a Commander of the British Empire Order in 
the New Year Honours List. 

I should like to thank the staff for their loyal and 
willing service during the year. Their efforts to maintain 
standards (especially in the adverse winter weather) and to 
improve efficiency are most worthy of note. 


Area of 
Supply 




CHELMSFORdV^'-' 


WlTHAM 


MALDON. 


MW* 

V'fK 


i 

:i*rwooo j£ l 

& o 


BH.LER1CAY 


BURNHAM 


ROMFORD 

VV 


BAS LOON 


RIVER THAMES 


.SOUTHEND 


THE STERLING TRUST 
PLC 


Year 

Toral 

For each 25p share 

Net 

ended 

gross 



asset 

31st Dec. 

revenue 

Earned Dividend 

value 


£*000 

P 

P 

P 

1978 

2,000 

6JI 

6.30 

239 

1979 

2,578 

9.32 

9.10* 

222 

1980 

2,740 

9.77 

9.50 

279 

1981 

2,735 

9.55 

9 JO 

301 

* Includes special dividend of 1 

.Op per share. 



Distribution of investments as at 31st December 1981 
United Kingdom 61-2% 

North America 22.2 m 

Far East 11.0% 

Other Countries 5.6% 


Investment Manager:— 

ROBERT FLEMING INVESTMENT MANAGEMENT 
LIMITED 

P&0 Building, (2nd Floor) 122 Leadenhall Street, 
London EG3Y 4QR. 


Crest Nicholson 

The holding company with interests in property, optica! products, 
conveying systems, sports surfaces and marine services 

17% Growth in Profits 


Salas 

Pre-tax profits 
Earnings per share 
fully taxed 
Dividends per share 


1980 . 1981 Increase 

£48/405,000 £54,068,000 12% 

5,421,000 6,324.000 17% 

6.73p 8.76p 30% 

2.30p 2.85p 24% 


* Increase in profits for the seventh 
consecutive year 

* 24 % increase in dividends per share 

* Continued further growth expected 
this year 


Accounts avaSablafrom the Secretary, 

Crest House, 97-97 Church Roach Ashford Middlesex TW75 2NH 


This advertisement is issued in compliance with the requirements of the Council of The Stock Exchange. 

Leisure Industries Group pic 

(incorporated in England under the Companies Act 1948 to 1960. Registered number 1615601). 

Share Capital issued and 

now being issued, 

Authorised fully paid 


Authorised 

£ 

700.000 

300.000 

1,000,000 


ordinary shares of 25p each 
12¥« per cent cumulative preference 
shares of £1 each 


£ 

500.000 

300.000 

800.000 


-in connection with a Placing by Samuel Montagu & Co, Limited of 784362 ordinaiy shares of 25p each at 
I20p per share, application win be made to the Council of The Stock Exchange for the grant of permission 
to deal In toe whole of the issued ordinary share capita! of leisure Industries Group pic (the "Company") in 
the Unlisted Securities Market it is emphasised that no application will be made for these securities to be 
admitted to listing. It is also emphasised that no application has been made to deal In the preference share 
capital of toe Company in the Unlisted Securities Market. Ordinaiy shares have been offered to and will be 
available through toe market subject to the grant of permission to deal in the ordinary shares in the 
Unlisted Securities Market Particulars relating to the Company are available in the Extel Statistical 
Services and copies of toe prospectus may be obtained during normal business hours on any weekday 
(Public Holidays and Saturdays excepted) up to and induding 2nd April, 1982 from: 

Samuel Montagu & Co. Limited 1 Panmure Gordon & Co. 

114, Old Broad Street 9,MoorfieIdsHighWaIk 

London, EC2P2HY London, EC2Y9DS 


LADBROKE INDEX 

Close 560*565 (—3) 


Panel to continue ACC share pr 


BY JOHN MOORE, CITY CORRESPONDENT 


THE TAKEOVER panel is to 
continue on Friday its examina- 
tion of the purchase of a block 
Of 925,000 “A" non-voting 

shares in Associated Communi- 
cations Corporation by business 
interests of Ur Robot Holmes 
a Court 

Mr Holmes 1 Court, who 
through his master company, 
the Bell Group, and TVW En- 
terprises. an associated 
company, is bidding for ACC, 
spent four hours with the Panel 
on Monday discussing the pur- 
chase of the shares. 

The share purchases, made 
over a four-day period, 
triggered an investigation by 
the Panel and forced Mr Holmes 
a Court to raise his proposed 
takeover bid for ACC to 95p 
per snare. That represented a 
lOp per share increase an an 
earlier offer made by his 
business interests for ACCs 
quoted non -voting equity. 

The share purchases were 
made by TVW Enterprises, which 
paid up to 95p per share for the 
block of shares. The Takeover 
Code requires bidders who are 

£16.7m forecast 
by Tunnel 

Tunnel Holdings, the cement 
and speciality chemicals group, 
has disclosed a pre-tax profits 
forecast for the year to March 
28 of £16.75m against £15.55m. 
The gain fulfills a forecast of 
higher profits for the year which 
Tunnel originally made last May 
in combating the unwelcome 
takeover bid from Thos W. Ward. 

The forecast and detailed 
assumptions underlying it are in- 
cluded in the formal offer 
document posted to Tunnel’s 
shareholders last night by Rio 
Tinto-Zine Corporation. 

As announced on February 25, 
RTZ is offering alternative cash 
or share terms for the 49.1 per 
cent of Tonnel's shares which it 
does not already own, as a re- 
sult of its own market purchases 
and its acquisition in January of 
Thos W. Ward. 

On the basis of a share price 
of 415p for RTZ. the offer com- 
prises shares equivalent to 553p 
per Tunnel share with a 550p 
cash alternative. The bid is 
recommended by Tunnel’s hoard 
and its advisers. Kleinwort 
Benson. 

REDIFFUSION 

Rediffusion's parent company. 
British Electric Traction, has 
purchased from Philips Elec- 
tronic and Associated Industries 
7.49 ordinary Bediffusion shares. 
This increases BET’S holding £0 
55.2m ordinary shares (63.92 per 
cent). Philips now bolds no 
ordinary Rediffusion shares. 


buying shares in the stockmarket 
at a higher price than their, offer 
■to increase the offer immediately 
to the highest price paid for the 
shares. The Panel has been 
investigating why there was a 
delay in the announcement of 
the revised bid and the circum- 
stances of the purchase. 

A pre-condition of the hid by 
Mr Holmes a Court was that 
Lord Grade should step down as 
chairman and chief executive of 
ACC and that be should be 
appointed in bis place. 

Directors of ACC have been 
reviewing the position of Mr 
Holmes a Ccun as chairman 
following an Appeal Court 
ruling which cast doubts over 
whether a bid by his business 
interests could succeed. 

Mr Holmes a Court said yester- 
day that he had not decided 
whether he will step down as 
chairman of ACC. “1 have not 
made any decision at this stage 
but 1 am keeping the matter 
under review." 

On Thursday of this week, the 
.offer document is expected to be 


dispatched to ACC shareholders 
which will detail a two tier offer 
from TVW Enterprise. TVW is 
offering shareholders llOp per 
share providing it gains 90 P« 
cent acceptances, and a fallback 
offer worth 95p which will 
become effective if it only gains 
control. 

A forecast for ACC, commis- 
sioned by Mr Holmes H Count 
three or four weeks ago. and 
prepared by ACC auditors Binder 
Hamlya will be studied by the 
board on Thursday. The foreoast 
will indicate the trading results 
of ACC for the financial year 
ending March 31. 1982- At the 
half way stage of its financial 
year ACC reported losses of £8ra. 
The forecast is expected to he 
announced on Thursday. 

Mr Holmes a Court confirmed 
yesterday that a $2m Cessna jet 
purchased through an ACC sub- 
sidiary had been sold at a loss 
•of approximately £150,000. I 
have established the circum- 
stances surrounding the purchase 
of the jet." be said. “and 
reported them to the board." 

He said that the latest offers 


hud been made through ht*T\& •• 
intcre&rs because TVW already , 
controls over 52 per cent of for 
non-voting equity and Wjjgfr:, 
have to pay •> much ; 

average price per Fiurc tnan-n-- 
BeU Group. Bell would have® * 
pay UOp per share, whereas. - 
TVW would be paying m . 
average price of Sip per snare-- • 
for the non-voting equity. 

Mr Holmes a Court reiterated .,, 
his warning yesterday that a:*, 
rights issue might be nocessat? .: 
if the group does not gain furl 
control of ACC. ■ A rwhts issueo: 
may -be necessary. If we Rot 9ft . 
•per cent then it would be up to 
us to inject new equity, and ; 
capital." - - > 

If the 95p per share offer 
succeeds TVW will enfranchise . 
the non-voting shares, ' 
Commenting on whether. TVW 

would lake profits on its st&kc 
in ACC. Mr Holmw a Court saH, 
“The question of selling out' is 
alwavs there. It is an altera**, 
live ‘ which TVW will haw to 
assess in the long term. TVW 
never planned a Cull bkL It ; 
made to protect its investrawA" .. 


Berisford ready for Commission 


BY RAY MAUGHAN 

COMMODITY TRADER S and W 
Berisford believes that it can 
counter the representations made 
by British Sugar Corporation to 
the European Commission. 
British Sugar has officially raised 
the question of the 40 per cent 
stake held by Berisford with the 
Competition Directorate of the 
European Commission under 
Article 86 of the Treaty of Rome. 

The essence of British Sugar's 
case, outlined at the beginning 
of this week, is that control of 
the dominant producer in the UK 
sugar market, British Sugar Cor- 
poration. by tiie dominant mer- 
chant, S and W Berisford, “wall 
distort competition." 

Mr John Beckett, chief execu- 

GORDON AND GOTCH 

Gordon and Gotch announce a 
restructuring of the shipping and 
forwarding activities of sub- 
sidiary Dawson Royle and 
Wiilan. 

Existing groupage services to 
Australia. New Zealand, South 
Africa, Canada and U.S. continue 
as now, while groupage services 
to all other destinations are 
being discontinued. 

A further change is that the 
group's book expoct wholesaling 
operation, hitherto carried on by 
Gordon and Gotch Books is also 
being discontinued. 


Peel’s acquisitions 


CONDITIONAL AGREEMENTS 
have been reached for the 
acquisition by Peel Holdings, 
property investment and manage- 
ment company, of two properties 
from Lamp Investments and 
Surby., and the whole of the 
issued share capital of Abbey- 
gate Securities (Midland). Lamp 
and Surby are wholly-owned sub- 
sidiaries of Largs, the ultimate 
holding company of Peel. 

The two properties, which have 
an aggregate rental income of 
£116.900. are located at Bury and 
Blackburn, and have been 
independently valued at £lm. 
Consideration for these acquisi- 
tions is to be satisfied by the 
issue of new ordinary shares in 
respect of the Blackburn pro- 
perty. and Lamp will receive 
652,174 shares in respect of the 
Bury property. 

The vendors, P. T. Jevans and 
T. Dootson of Abtoeygate, will 


receive 272,550 new ordinary 
shares. The consideration for 
Abbeygate reflects a discount of 
39 per cent on the estimated 
development profit on completion 
of the Blackpool property based 
on the current share price of 
116J>p- The acquisitions are 
valued in total at £1.33m. 

The new shares will not rank 
for the interim dividend which 
was declared along with Peel’s 
half-year figures yesterday. 

Pre-tax profits for the half-year 
to September 30 1981. improved 
from £33,951 to £484279. Total 
income was down from £117,417 
to £100,095. There was again no 
tax charge. 

The interim dividend is lp 
(nil) — last year a single payment 
of 2p was made. Largs is -to waive 
its entitlement re its sharehold- 
ing until March 31 1984. 

Stated earnings per 25p share 
improved from 2.5p to 3.35p. 


BUILDING SOCIETY 
RATES 

Every Saturday the 
Financial Times 
publishes a table giving 
details of 

BUILDING SOCIETY 
RATES 

on offer to the public 
For advertising details 
Please ring : 

01-248 8000 Ext 3606 


THE TONG HALL 
USM INDEX 

m2 (-0.3) 
close of business 16/3/82 
BASE DATE 10/11/80 100 
TeU 01-638 1591 



BP tc) 

BP (ci 
BP tc) 

BP tc) 

BP tpl 
BP 'pi 
BP <p) I 
BP (pi 
CU tc) 

Cons. Gld (ci! 
Cons. Gld (ex 
Cons. Gld to)! 
Cons. Gld (p) 
Cons. GW (pj 
Ctlds. (c) 
Ctlds. (c) 

GEC (a) 

GEC (c) 

GEC (c) 

Gr*d Mat tc] 
Gr*d Mot (c) 
GCd Met (C) 
Grid Met (pV 
ICt (c) 
to (c) 

KX (C) 
fCI (C) 

ICI rp) 

ICt (pi 
ICI (pi 

Land Sec. (fi); 
Shell (c) I 
Shell tc> J 


- I — — 278p 

- 24 50 ,, 

- 15 21 „ 

10 j — - 

- ! 28 25 j ” 

- I 46 20 | • „ 

- 1 18 — il45p 

9 37 — 3S9p 

4 22 — _ 

5 15 4 „ 

8 32 — 

1 47 — 

- 2 He! — 03 p 

84 14 la | - 

~ - I - |814p 


— 83p 


— 77 

30 52 

— 42 

— 25 

10 13 

— 92 


— 204p 

8 : 

— 3 sap 

5 as 


Barclays (ei i boo ! 

Barclays ip) l *20 

Barclays Ip) | 460 

Barclays (pi ; 600 

Imperial (c) j 70 

Imperial (c> 1 80 

Imperial (c) I 90 

imperial (p) i 80 

Imperial (p/ 90 

Lasmo (c) 280 

Lasmo (e) 300 

Lonrho (c) 70 

Lonrho (3 80 

Lonrho (p> ' 

Lonrho (pi * 

Lonrho (p) f 

P«0(c) II 

PAO(o) IS 

P ft O tc) U 

focal (cl 32 

focal (o) St 

focal ic) 3S 

focal (3 4! 

focal (p) 31 

focal (p) 66 

focal tp> ! 42 

RTZ (Cl 48 

RTZ (3 44 

RTZ (pi 38 

RTZ (pi 48 

Vaal Rfs. (c) 3 

Vaal Rfs. (a) 4 

Vaal Rfs. ip) 3 

Vaal Rfs. ip) 4 

vaal Rfs. (pi 4 

Vaal Rfs. (a 5 

C=Call 


May 

6 16 ! 

i? - ! 
50 - 

2U« 20 

IDs 157 

4lj 160 

1 

31* 10 

18 - 

9 13 

7 10 

3 20 

2laj 23 

8 - 

17 31 

20 5 

14 5 

8 7 

45 — 

24 10 

8 21 

3 2 

4 - 

10 . 10 
55 - | 

22 2 I 

9 200-1 

21 8 I 

6 ! - I 


12 - 16 . IQ |296p 

20 - SO - . [548p 

10 I 10 | IB | — | „ 

August November 

10 I - I 20 ! - 453p 

8 3 - “I n 

27 | 1 30 — I " 

52 i 3 55 

24 | _ - eip 

15 54 I 18 - 

B'e 52 i 10ii 30 

2i a - | 4 30 , 

Si a - eia - ” 

30 1 42 - |376p 

Z2 - 32 - ,, 

10 175 11 — 74p 

5 iz 7 - 

4 6 B — 

B - 11 3 Z 

— — — — 126p 

18 - 22 - ,, 

12 — 17 _ 

55 1 62 1 371p 

35 B 47 2 

22 - 33 - l 

1 1 I si i3 : :: 

15 1 i 2 °\z - 


— | 40 - 

- ! 27 — 

* i ll ^ 

— i o5 — 

-19- 1 

5 6 

- I 34 10 

6 ; 4 3 

ID 54 - 
10 j I2i a — 

P=Pul 


z ; 414p 


Have of British Sugar, said then 
that he hoped that “ is the final 
outcome. Berisford would be 
judged to have abused that posi- 
tion and would be forced to 
divest.’* 

After a qualified go-ahead from 
the Monopolies Commission and. 
a prolonged bid. which lapsed 
last summer. Berisford will he 
free to add to its holding from 
the beginning of July. 

Speaking to Berisford share- 
holders at the annual meeting 
yesterday, the chairman. Mr 
Ephraim Margulies, said that at 
the outset the commodity trader 
had “consulted high officials in 
the European Commission." 
Although no formal commitment 
had been given in what was then 
a hypothetical position, the 


group .had been informed rihat- 
there would be no objection to a 
bid. „ • 

Berisford’s finance director, 
Mr Gordon Percivai. said after 
the meeting that ** the first thing 
we did when we made the bid 
was to consult DG 4, the Com- 
petition Directorate of the Euro- 
pean Commission, and DG 6. the 
Agricultural Directorate. . ..We .. 
felt" he said. “ that it was the _ 
prudent thing to do." 

Earlier, Mr Margulies had told 
the meeting that loss etimuutioa 
and sharply better results in 
some divisions had offset set- 
backs elsewhere, and profits, 
were modestly ahead so far. ; 

He hoped that tho current 
year would compare favourably 
with 1980-81. 


LLT agrees £1.8m deal 


London and Liverpool Trust 
has conditionally agreed to 
acquire three companies: 
Guardian Computer Services; 
Domelion; and T & T (Metal 
Products). 

These acquisitions involve an 
initial consideration of £LSlm, 
including £35,000 in' cash, and 
the issue of 4.52m ordinary lOp 
shares in LLT. amounting to 
£1.78m. On completion 2.13m of 
these shares will be placed on 
behalf of the vendors. 

Further considerations will be 
payable depending on the profits 
of the companies being acquired. 

The Guardian Group comprises 
software houses in Manchester 
and Leeds, two subsidiary whole- 


salers of computer supplies, anil 
an employment agency for com- 
puter staff. In the last full year 
Guardian pre-tax profits were 
£34,000 on sales of £676,000. The 
initial consideration is £300,009. 
Two further tranches amount to 
a maximum £800,000. 

The Domelion Group- is -a 
distributor of business equip- 
ment Pre-tax profits for 1981 
were £249.000 on sales of £4fi2m. 
The initial consideration Is 
£30,000 cash and £1.4m in shares. 

T & T (Metal Products) is a 
specialist manufacturer involved 
in stove enamelling and press 
work. Pre-tax profits for 1981 
were £41,000 on sales of £513,000. 
The initial consideration is 
£S4,857. 


EUROPEAN OPTIONS EXCHANGE 


Series i 

Vol. 

May 1 

; Last 1 

. Aug. 

Vol. j Last 

Nov. 

VoL ; Last 

GOLD C $325j 

- 4 

110.50 Bj 
6.50 B 

15 

29 

_ 

- 

GOLD C $350. 

B 

15 

17 

60 

24 

GOLD C $375 

17 

2.10 

5 

98 

10 

18.50 

GOLD C 9400 

11 

l 1.60 • 

1 

4.50 

25 

11 

GOLD C S426< 

1 

' o.so- j 

3 

8.50 



gold p sses; 

151 

16 A'- 

38 

18. A 

12 

20 A 

GOLD P $350 

50 

34 Al 

30 - 


4 

36 A 
52 A! 

GOLD P $375| 

12l< NL 81 87-01 

1 

! 51 Ai; 


3 

C F.107.50J 

80 

I 3.60 1 

10 

3.80 



C F.IIO 

— 

— 

40 • 

2, 3D 



C F. 112. 60: 

— 

1 — 


165 

1.90 

P F.110I 

10*4 NL 80 86-95 

” 

' i 

' 

— 

20 

1.60 

C F.9H 

C F.IOO I 

35 

( 7.20 : 





— 

1 j 

10 

3.10 


; 

P F.lOOi 

1H« NL 82 88-92 

“ 

! 



- 30 

1 | 

C F.IOO 

100 

! 3 -u> 1 

_ 

__ 


1 

C F.l 02.50 

20 

! 1.30 1 

50 

2.20 

— 

- 1 


AKZO C 
AfCZO C 
AKZO C 
AKZO P 
HEIN G 
HEIN C 
HOOG C 
HOOG P 
KLM C 
KLM C 
KLM C 
KLM C 
KLM P 
KLM P 
KLM P 
KLM P 
NEDL C 
NEDL C 
NEDL P 
NEDL P 
NATN P 
PHIL C 
PHIL C 
PHIL C 
PHIL P 
PHIL P 
PHIL P 
RD C 
RD C 
RD' C 
RD P 
RD P 
UNA. C 
UNIL C 
VNIL P 
UNIL P . 
UNIL P 


STEM C DM.8201 
SLUM C S5^ 
W C ; DM,150 1 

TOTAL VOLUME IN 
A=Acked 


FAS 

FJ37.50L 

F.30 

F.27.50' 

F.50i 

sa 

F.15; 

F.90; 

f.ioo; 

f.iio; 

F.120; 

F.80 
F.90 1 
F.IOO | 
F.IIO; 

. F.l 101 
F.L2CT 
F.110J 
F.isa 
F.I05I 
F.20. 
F.22.SO| 
FJ2S 
F.20 
F.22.50! 
F.26 1 


April 

38 ; 5.70 • 
15 j 1.50 j 

39 ' 0.70 • 
21 j 3.40 j 

10 | 1.70 B: 
5 [ 0,30 | 
10 113.70 
243 I 6.10 I 
135 : 3 > 

45 i 1.3Q 
12 ; 0.20 i 
30 0.80 • 

139 3.10 ‘ 

25 110.30 ; 


42 I 0.90 
20 I 1.50 


5 '17.50 Bl 
31 11 I 

155 , 6.60 ! 


0 j 5.80 ! 


5 . 3.50 ; — , _ 


13 .' 5.90 
21 ; io j 

40 1 2.20 ! 
123 < 0.60 ' 

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5 ‘10.10 I 
194 2.30 

164 0.40 

37 2.50 

8 21 I 

36 3.50 j 

70 Z 

J. I 4 | 

40 | n j 
May 

20 j 5.50 I 
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CONTRACTS: 
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10 2J20 \ 

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1881-82 

High Low Company 
126 100 An. Brit. ind. CULS... 

76. ©..-AimprtfnB " 

SV 33 Armitaga & Rhodea... . 

205 187 Bardoh . HU) 

107' 100 CClUpc Conv. Pr*).... 

104 64 Dtborah Sarvicu 

131 97 Frank Horaull 

83 38. Fwdvrick Parker 

■78 ' 46'- George Blair 

102 93 Ind. Precision Ce a tings 

109 100 lair Conv.- Pr*r 

113 '94 Jackson- Group 

130 108 Jamae Bumugfi 

334 ~ 248 Robert Jenkins 

83 .51 ScruRona "A* 1 

222 159 Torday fi CeHialo 

15 10 Twlnkick-Ord. 

80 66 Twinlock 150C-ULS 

44 . 25 UnUock Holdings 

103 73 Walur Alexander 

263 .212 -W..S. Tains 


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Price Changa-dlv.(p) .7, Actual taxed 
1“ — 10.0 7.9 — . — 

J? — 4.7 8.4 114J 18.0 

I* -i a.? 4j» a.« ti.7. 

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“ M 3.2 MJO 

127 -1 6A. 5.0- 11,4 23.5 

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+1 7J = 7.7 ai8 - 10.3 
1OT — 15.7 14.4 - — — 

7.0 . 7.2 13.1 B.B 

”3 — 8.7 .7.7 8.2 -10,4. - 

250 -3 31 .3 125 3.5 8.8 

63 — 5.3 9.7 9.0 ’ 

IZ 1D ^ 6,7 B.l 9.8 

7» — 15J) 190 — Z! 

= “ 3.0 12.0 4.5- 7.6 

78 +1 6.4 8^ 5.1 8.1 . 

226 — 13:i Si* A3- 8.7 


Pneea now avail a b la on Pru»| page 48 M 6 . 'l ' 














Emancaal- March. 18 . 1982 


Financial Times Wednesday March 17 1982 


>be 




CwBiiamts^anl Markets 




»sion 


iANGE 


10 & 


MINING NEWS 


Pancontinental at last 
gets Jabiluka go-ahead 


UK COMPANY NEWS 

Ductile swings 
back in black 


’fcY KENNETH MARSTON, MINING EDITOR 

AT LONG. LAST, Australian agreement 1 
Govpmmfcat ccradtkmal approval It wiH aid 
has been sires for the raining the Cover 
oE the big and rich Jabiluka of a min 
uranium deposits in the Northern AustxaliazL 
Territory of partners, Australia’s vesture to 
Pancontinental Mining (65 per commercial 
ce*t) ami Getty Oil of the U.S. Jabiluka 
(35‘ per cent). The inttint contain or 
discovery was made over 10 uranium < 
years ago. Evades apj 

Mr Doug Anthony. the tonne. The 
Australian deputy prime minister envisaged 
sad Minister for Trade and would be c 
Resources, said yesterday: “I with an a 
have today given conditional 4,500 tomw 
approval under tire Government’s tins output 
uranium export policy for the market ecu 
development of the Jabiluka During 
u raniu m, deposits in. the Northern procrastma 
Territoiy. by polilica 

“This means that I wiU be considerate 
oWe to authorise the project other majo 
partners to enter the market finds have 
place to commence negotiations the world 
far the sale of the product from gone from 
Jabttuka. Xu maidrig this decision . Daring 1 
I have taken account of the far uranfa 
views of tfftie Northern Land above $42 
Council wtodEh has indicated its since faller 
support for market entry.” of $25. 3 
He adds that approval as. weakness i 
rootHfcpoual upon the project ever, Jabi 
partners reaching agreement grade ore 
with the Northern Laud Council operating 
Aboriginal authority; such, an able to an 


agreement was recently initialled. 
It wiH also be . necessary for 
the Government’s requirement 
of a minimum 75 per cent 
Austxafitan ownership in the 
venture to be met by the time 
commercial production starts- 
Jabiluka ds estimated, to 
contain over 200,000 tonnes of 
uranium oxide in rich ore 
trades approaching 8 lb per 
tonne. The capital cost of the 
envisaged underground mine 
would be over A$600m (£3S4mt 
with an annial production of 
4,500 tonnes of uranium made: 
tins output could be doubled if 
market conditions permit. 
During the long years of 

S rocrastmatfon brought about 
y political and environmental 
considerations, Jabiluka and 
other major Australian uranium 
finds have remained inert as 
the world uranium market has 
gone from boom to bust. 

Daring that time spot prices 
far uranium oxide have gone 
above $42 per pound and have 
since fallen to the current level 
of $25. Despite the current 
weakness of the market, how- 
ever, Jabiluka with its high 
grade ore and indicated low 
operating costs should still be 
able to arrange very profitable 


Sentmsf s rounding-up 
plan for the ‘odd-lots’ 


FULL DETAILS are announced 
of the proposal by South Africa’s 
Sen trust to" eliminate the hold- 
ings of less than 100 shares in 
this General Mining Union 
Corporation group’s investment 
company. Such holdings are in 
the hands of about 40 per cent of 
the company’s shareholders. 

They thus constitute a dispro- 
portionate cost burden in share 
registry and the distribution of 
annual reports and other com- 
pany documents. It is also 
thought that this tidyiog-irp 
operation might pave the way for 
a merger between Sentrust and 


the group’s other investment 
company, UC Investments. 

“ Odd-iot ” holders of Sentrust 
are thus being asked to increase 
their holdings to 100 shares. 
This they can do by purchasing 
the required number of shares 
from the company at a price of 
863 cents per share, or by buy- 
ing the requisite number of 
shares on the open market. 

Those holders who do not wish 
to increase their shareholdings 
will have their shares converted 
into redeemable preference 
shares 


long-term contracts, probably I 
at prices above the current spot ; 
leveL I 

Mine construction work could 
be started later this year and 1 
it would then take about three i 
years to reach 'the production I 
stage. Whether the uranium 1 
market will have picked up by i 
then remains to be seen. It | 
faces major competition from 
the growing production of coal , 
as an energy source which does | 
not attract the environmental : 
fears attaching to nuclear 
power. 1 

However, some countries, 
notably France, are pressing on , 
with nuclear power develop- 
ment and eventually uranium 
will be needed take its place 
alongside other energy sources i 
in order to meet the world's 
demands. And Jabiluka should 
have a long mining life. , 

Pancontinental shares rose 
lOp to HOp in London yester- 
day. Depending on the com- , 
pany’s success in securing 
ur anium supply contracts— it 
will face competition particu - 1 
larly from- the new Canadian 
uranium development in the 
Key Lake area — patient holders 
of the shares may now feel that 
their rewards ore in sight 

UM dosing its 
Thierry mine 

THE weakness of copper 
markets ' has claimed another 
mine as a victim. Belgium’s 
Union Mini ere is reported to 
have decided to close down its 
Thierry copper mine at Pickle 
Lake, Ontario, on April 8. 

The mine, which started 
production in 1976, provides 
copper concentrates for smelting 
and employs about 170 workers. 
In 1980 it turned out 42,463 
short tons of copper concentrate 
containing 10,938 short tons of 
copper. 


M.P. KENT LIMITED 


Property Development. 



IOTEEIM STATEMENT 


The Directors have pleasure in presenting an interim 
report for the six months ended Slsfc December 1981 - 

{tmaudited). 

6 Months to 

31J2.81 

31.12.80 

\ 

£’000 

£’000 

Sales 

12,403 

10,367 

Profit before Taxation 

2,662 

2,074 

Taxation 

— 


Profit after Taxation 

2,662 

2,074 

Cost of Interim Dividend 

154 

123 

Warnings per Share 

6^p 

4.8p 


Profit for the six months ended 31st December 1981 of 
£2,662,161 represents an increase of 28 % and it is 
proposed that the interim dividend after adjustment 
for the bonus issue should be increased by 20% to 0.36p 
per ordinary share. 

The development programme continues to expand with 
a. good proportion of forward sales and lettings. This 
beneficially affects our potential net worth and 
together with increasing liquidity places us in a strong 
fiuancifll position for acquisitions and growth. 

M. P. Kent, Chairman 


M. P. Kent limited, 

Northclifie House, Colston Avenue, Bristol. Tel. (0272) 214971 


^Drayton 

Montagu 




A RETURN to profit, as foer- 
cast by the directors in Decem- 
ber, is reported by Ductile 
Steels. The pre-tax figure was 
£2.06m, against losses of £L49m, 
for the 27 weeks to January 2 
1962. In the year to June 27, 
the company incurred losses at 
£ 2.17m. 

After passing ■ the interim 
dividend last time, 2J5p is being 
paid, and this absorbs £325,000. 

Group turnover rose from 
£23. 12m to £28m and trading 
profits were £2.15m, against 
losses of £L26m. 

Mr R. Sidaway, the chairman, 
says the results confirm the re- 
covery in trading performance 
that had become apparent by the 
end of the last financial year. 
They show a considerable im- 
provement over those for the 
comparable period and the 
company's steel, tube and stock- 
holding divisions were in profit 

In toe engineering division, 
however, he says both demand 
and margins were disappointing 
and further rationalisation has 
I been carried out to improve the 
position. 

Trading activity in January 
and February continued at the 
levels experienced in the 
second quarter of the financial 
year. The group is still operating 
below capacity, however, and 
there is considerable scope to 
benefit from any further upturn 
in demand. 

The pre-tax figure was struck 
j after interest charges of £86,000 
(£229,000). There was a tax 
charge of. £763,000 (£L38m 


credit), leaving attributable 
profits of £l-3m (£102,000 loss). 

Stated earnings per 25p share 
were 9.97p : (0Bp losses)-.- 

• comment; 

Although., these.' .results are no 
surprise, "toe market put.4p .on 
Ductile Steels” shares yesterday. 
At I22p they : are -not# -nearly 
40 per cent higher, than .their 
year-end leveL The- hoi breath 
from Caparo Industries has 
apparently cooled as "Ductile 
continues to intend- and 'the 
shares progressively strengthen. 


• NEWS ANALYSIS— BATS' U.S. RETAIL EXPANSION 

Breaking tobacco habit 
by broadening base 


BY DAVID CHURCHILL AND OAVK> lASC FL LE S 


The group’s steel recoiling- and, 
stockholding division has spear- 
headed the recovery; from a 
£2.4m loss last year the group 
is now on target to make a 
trading profit of about £2.5m 
this year. This achievement is 
based on a useful- increase in 
orders, cost-cutting* and toe 
closure of the Planetary mill- 
which eliminated a loss of 
about fjm. Stripping- oat- toe 
closed mill's sales - In toe -com- 
parable period, turnover in the 
six months in "the remaining 
businesses advanced -by some 40 
per cent. Ductile? says nearly 
all of this is . due to volume in- 
creases, as the 'October' and 
January steel price rise will not 
come through until the second 
half. The group should reach 
£4m in the full: year, which 
gives the shares a. fully taxed 
p/e of 8. The final looks safe 
and the prospective yield is 8.9 
per cent Caparo still bolds 20 
per cent of toe equity. 


Mr Glasgow quits and 
decides to fight rights 


MR JAMES GLASGOW has 
resigned from the board of 
Glasgow Pavilion and now says 
he will fight the group's planned 
£240,000 rights issue. 

Mr Glasgow's initial opposition 
led to an adjournment of the 
extraordinary general meeting in 
January to approve toe issue. 
Subsequently, be agreed not to 
use his voting rights to oppose 
toe issue and to accept an 
appointment to the board. 

He became a director late last 
month, but two weeks later 
decided to design. He said he 
did not feel able to sign the 
draft rights issue document 
because the group's profits for 


the, full year to October 3L, 1981 
had not been included. - 

He also feared that toe com- 
bination of second-half losses and 
the rising costs of the rights 
issue would .mean, that the net 
proceeds would be insufficient 
to eliminate . the . group's 
indebtedness. 

Mr John Woo I gar,- a director 
of Hill Woolgar, which is under- 
writing toe issue, said the group 
is proceeding with the righto 
issue document He said' that 
toe group has traditionally pub- 
lished its full year figures in 
May and added that the proceeds 
would more than cover toe com. 

party's indebtedness.'"- 


BAT Industries’ latest attempt 
j to break away from toe strangle- 
bold of its tobacco empire— it is 
the .largest cigarette producer in 
the 'Western world— is along the 
well-trodden path into retailing. 

- Having -decided that It had tci 
broaden Its activities away from 
tobacco, BAT has resolutely 
bought its way into the retail 
world with varying degrees Of 
success. Its latest acquisition, the 
77 department stores operated 
by Marshall Field in the US., 
may not be the most sparkling 
jewel in U.S. retailing at present, 
but BAT has repeatedly shown 
its willingness to take a long- 
term view about its acquisitions. 

The furtoer move into U.S. 
retailing, which BAT has now 
got under control after a shaky 
start, was signalled hist 
summer. The company has made 
it dear that having chosen its 
areas . for diversification, it 
Intended to stick with them — 
and that, in the U.S. has meant 
further acquisitions. 

BAT has been in the diversi- 
■fication game, along with the 
other tobacco multinationals, 
since the early 1960s, when It 
became clear that it was becom- 
ing too dependent on tobacco 
earnings. 

In the late 1960s it moved into 
the cosmetics and paper indus- 
tries. notably through toe 
purchase of Wiggins Teape. 
Then, in' the early 1970s, it 
decided to enter the potentially 
massive and lucrative retailing 
industries in both Europe and 
the U.S. 

Unfortunately, for BAT the 
strategy has become harder to 
implement than it surely must 
have believed. Moreover, at is 
still earning some 71 per cent 
of its profits from the tobacco 
side, even though its diversifi- 
cation policy means that tobacco 
turnover only accounts for some 
56 per cent of the total. 

Retailing, on the other hand, 
produces some 23 per cent of 
the turnover but, according to 
the last published account's for 
1980, it only provided some 9 
per- cent of profits. 

In the UK, the company’s 
retail acquisitions started in 
1972 when the International 
Stores chain was bought for 


52 companies wound up 


Compulsory winding-up orders 
against 52 companies have been 
made by Mr Justice Nourse in 
the High Court They were: 

Ferznar Shipping International, 
Mainman, Advanced Video Ser- 
vices, H.R. McDennid (Guisdey). 
Batzone, Appenworth, Chelmer 
Freezer Foods (Braintree), 
Marryat Handling. 

Asways Enterprises. Bleeville, 
Glee Holdings, Mountbouxne, 
Valentine Clarke, Wolfe and 
Elliott (Transport and Ware- 
housing), Chisholm Investments^ 
Mullintire, Milford Refineries 
Suppliers. 

Mote Coaches, Thames-Northern 
Express (Parcels), Richard 
Westwood, JOI.S. Builders* 
A & M Collections, Essex Com- 
muter Club, Billron Holdings, 
Cbilkool, Crystal Cara (S treat- 
ham). 


Shaw Nichols Associates, 
Fascoworth, ECS- . (Oldham), , 
John E. Le Fevre and Co„ : 
SAM. Properties, R. Caplan, 
Bell and Linm, Red Hen Eggs. 

Goldsxmto-Browzthnt -Combine 
(Entertainments & Promotions), 
KJS.M. Fibreglass (Wales). Sti- 
constar, E. Stanley Engineering 
(Tyne & Wear); Norgull, Acle 
Motors, Superwhite (London). 

Northumbria Print ConnanVt 
Builders, Pilglen, Rarmerglaw 
{ London & Bristol), Sbafstorie, 
S. JafEry and Co., Whiteheads 
(Dyers), Hunter and. Pan-, 
Vincent Lloyd (Partitions), 
Cygnet Electrical Company, 
Debrem Wholesale. 

A compulsory winding-up 
order made . on March 8 against 
Stoeerwater Construction was 
rescinded and the petition dis- 
missed 1?. consent 


RESULTS AND ACCOUNTS IN BRIEF 


PROVIDENT FINANCIAL GROUP — Rfl- 
sutis for 1981. re ponod March 3. Group 
net current assets E82.2m (f72L2Sm) — 
r«::<vt>Ue Iron) customers £260. 55 m 
(E 230JS3m) and bank advances £1 23.72m 
(£11.039in). Meeting. Bradford. April 7, 
at noon. 

BROADSTONE INVESTMENT TRUST— 
Results for 1881 reported February 10. 

" Lilted investments £36.37m (£35. 24m); 
unlisted «.53m (£3. 1m): unrealised 

appreciation £1fl.9m (£16.9m). Net cur- 
rent liabilities £86.119 (£9.120): share, 
holders' funds £28. 74m (£36.24m). 

Meeting. 120 Cheapwide EC, April 5, 
235 pm. 

MUNICIPAL PROPERTIES — Dividend 
B35p (7.5p) for 1381. Turnover 
£327.620 (£288.742). Net profit £130,638 
(£141.008). af«r tax of ■ CI39.ZM 
(£163,602). Earnings per SOp share 
2839p (29 .lap). A surplus of EB2.57* 


(£56.574) before tax. on property setae 
by the tfoeimg subsidiary , included in 
profit. In addition, a surplus on pro- 
perty safes by the holding company of 
£247.075 (£209.273) net -has been 

credited to ‘(reserves as ' in previous 
years. Cunebt valuation of properties 
torrid £5.643.693 (C5.Z78.0S). 

COMPCO HOLDINGS (property Invest, 
ment end dev el opment)— Pre-tax profit, 
half year to September 25, 1981, 
£168.606 ' (€iei.6U). Tax . £89.811 ' 
(£87.894). Earnings per 20p share 3.85p 
(3.60p). ■ Group- -profits 4or second had 
year expected to ra/tecr ntu« fully the 
increase in rentals achieved during 
.year. 

GEORGE INGHAM— Dividend 0-25p 
(nil) ' far 1381. • Turnover £2. 96m 
(£2. 68m). Pre-tax profit £25,000 

S ra* £72.000). Tax £2,000 (nil). 

mings per spare 1.2p. CCA pre-tax 
loaa £46.000 (£124.000}.' * 


Total assets at 3 1 December, 1981: 
£99.6m. (1980: £95.7m.) 

Net asset value per Ordinary share rose from 
292£p to 304%p. An increase of 4.2 per cent 

Net revenue available for Ordinary shareholders 
rose from £3,235,464 to £3,463,1 79. 
An increase of 7.0 per cent 

Dividend for the year rose from 
10.2pto 10.71p. 
. An increase of 5.0 per cent 


Chairman, John Storar, reports: 

I consider the general outlook for die 
future to be more optimistic than it was 
twelve months ago. There are encouraging 
sigus that, corporate profits in some sectors 
-of United Kingdom industry will rise 
significantly daring 1982. 

Particular attention will be paid to improving. . 
■ the Revenue of this Company, without' 
sacrificing the quality of the investments. 


Copies oFthe Report and Accounts for the Year Ended 31 December, 1981 can be obtained from: 

Drayton Montagu Portfolio Management limited 

117 Old Broad Street, London EC2N 1 AL. Telephone: 01-588 1750 

rt w-amwif ni vfeifm of SamnelMmtegn & Co. SJodud 


some £68 m. In the same year, 
tive KohTs. . faspenuorket. ami 
stores chain in the U.S. was 

acquired. for £30m.. * 

This was followed m 1973 by 
the £S3m acquiation is the U.S. 
of toe GimbeL Brothers depart- 
ment stores and -toe Saks. Fifth 
Avenue high fashion chain. 

In lie. UK, BAT bought toe 
Pricerite supermarket chain in 
the same year for £l2m and 
merged this with International. 
The Argos stores group was the 
most recent major retail 
acquisition in 1979 at a price 
of some £30 m. 

Although Argos has proved 
profitable. International Stores 
has not moved into profits during 
BAT’S ownership and there are- 
few in the retail world who 
would give it much of a long- 
term future. 

Marshall Field will add an- 
other division to BATs* already 
considerable U.S. retailing 
empire, though whether it will 
bring problems or profils is a 
matter for some conjecture. 

The company has a decidedly 
mixed reputation in toe hard- 
driving world of U.S. retailing. 
In toe first nine months of last 
year, profits were S7.1m, which 
suggests they could be below the 
full year earnings of $20. 7m in 
19S0. and still well below the 
record year of S22m in - 1972. 
Sales were SS22.5m compared to 
$1,012 fins in the whole of 19S0. 

Marshall Field is a grand old 
name in . Chicago, a sort of 
Harrods .of America's second 
city, with a large downtown 
emporium and more than a dozen 
outlets in toe suburbs. But like 
a lot of established names, it has 
been . losing market share to 
more aggressive. ‘ better 
org anis ed newcomers, and it is 
currently fighting a defensive 
battle on its home turf. 

It also runs a far-flung and 
somewhat bitty empire of depart- 
ment stores, furniture shops and 
specialty outlets on the West 
Coast, in Texas and the South 
East. This loosely Strang, thinly 
spread structure was created 
deliberately by management to 
fend off takeover approaches 
after Hawley Hale, another large 
chain, made an unwelcome hid 
in 1977, Offering U-S.S42 a share. 


nearly twice what BATs -Is offer- 
ing today. 

This is why Bat s could have 
its work, cut out if the deal goes 
through. 

“ BATs must realise that it is 
taking on a challenge,” said Mr 
Stuart Robbins, a retail industry 
analyst with the Wall Street 
research firm of Paine Webber 
Mitchell Hutchins. “It will have 
to re-evaluate all the divisions 
and decide which it is going to 
go with. But I have a high regard 
for BATs as a merchandiser and 
I think it can help.” 

Against the obvious risks in 
the bid. however, BATs appears 
to be taking few chances finan- 
cially because the price is well 
below what others have offered. 
Marshall Field also has plenty of 
saleable assets, mostly property, 
to yield cash If needed. The 
quality of management under Mr 
Angelo Arena, who joined as 
chairman in the lare 2970s. is 
also rated quite highly. Although 
be has not brought Marshall 
Field bounding bark, be has 
made some well-judged disposals 
and doubled revenues. 

-One of BATs’ immediate tasks 
is to square up Mr Cart Icahn. 
the New York corporate raider 
who has acquired 30 per cent of 
Marshall Field, provoking an 
acrimonious set-to with the com- 
pany and prompting it to go out 
and look for a rescuer. 

Mr Tcahn said yesterday that 
he will contest the bid by all 
available means, but some Wall 
Street sources believed he might 
be persuaded to settle for a 
slightly improved offer. Mr Icahn 
was recently thwarted by another 
British company, NCC Energy, in 
his efforts to take over Simplicity 
Pattern, a cash-rich New York 
company that makes dress 
patterns. 

There may be scope for 
rationalisation of BATs’ existing 
U.S. retailing business and 
Marshall Field- Saks, the Harrods 
iff New York, is in a similar 
upmarket niche, and is doing 
well. Gimbels, a more popular 
store, is in better shape than it 
was but still in need of a boost. 

BATs claims that its other 
retailing interests are perform- 
ing satisfactorily. 


IMI 1981 Results 


Vhar ended 
31 December 1980 
£000 


628,582 Group sales to external customers 
28,240 Group profit before taxation 
5,693 Taxation 

23,492 Earnings aftertax applicable to IMI pic 
(9,387) Dividends 
253,182 Nettangibleassets 


Year ended 
31 December 1981 

rooo 

532,468 

23,808 

5,171 

15.303 

(12,080) 

290,669 


Notes 

•1. Provision has been made for the payment of a bonus of £1.4 million (1980: £1J8 miMon) 
to employees participating in the IMI Employees' profit-sharing scheme. 

2. During 1981, the zip fastener subsidiaries became associated companies as part of the 
Opti Group in which IMI has a 50 par cent interest but not management control.The 1981 
figures include the results of these companies up to the date at which they ceased to be 
subsidiaries, comprising. sales to external customers £18.6 million (1980: £533 million 
for full year) and losses before taxation of £3.0 million (1980: losses £33 million for foil 
year] of which £15 million (1980: £15 million) is applicable to minority shareholders. 

3. The Directors consider that the equity investment in the Opti Group should be provided 
against in full because of continued trading difficulties and £3.0 mii/ion has therefore 
been written off against profits as an extraordinary item. In addition, I Ml's consolidated 

' reserves in the balance sheet have been reduced by £9.8 million relating to these 
associated companies. At 31 December 1981 loans to the Opti Group amounted to £9.2 
million and a further £5.8 million of undertakings, counter-indemnified by the Opti 
Group, were outstanding: the Directors do not consider that any provision is necessary 
against them. 

4. Profit before taxation includes IMI's share of the profits, less losses, of majorassociates of 
£OA million. As the investment has been fully written off, this does not include any 
contribution from the Opti Grou p. For 1 980, IM I's share of profits, less losses, amounted to 
£0.6 million, including £1X2 million In respect of the Opti Group. 

5. Thechargefortaxationcamprises:- 

£ million 

UK Corporation Tax, based one rate of 52% (27) 

Overseas taxes 28 

Advanced Corporation Tax written off 52 

Ad) ustmemforprevious years (0.1) 


The Advance Corporation Tax is not presently recoverable and has been written off .The 
effect of stock appreciation relief combined with accelerated capital allowances and other 
- timing differences has been to reduce the tax charge by £1 1.5 million. 

Dividends 

-THe'Directors jefiommend a final dividend of 25p per Ordinary Share, payable on 
7 May 1982 to shareholders on the Registeratthe close of business on 8 April 1982, 
which will absorb £6,711,000 (1980: £5^15,000j.Tbgether with the interim dividend 
of ZOp per share paid on 26 October 1981,this makes a total of 4I5p per share, the 
same as 1980. 

Brief Review of Activities 

Sales values fell by £97 million from the record figure of £629 million achieved in 
1980. Home sales were down from £380 million to £327 million, export sales from 
£135 million to £114 million and sales by overseas companies from £114 million to 
£91 million; If, as far as possible, the effects of price changes, exchange rate 
variations, and the conversion of subsidiaries to associate status are all excluded, 
sales volume of UK-based companies fell by 12 per cent and sales volume of 
overseas companies rose by 1 per cent, an overall drop of 10 percent Most of this 
fall was experienced in thefirst half year in which trading in the comparison year 
of 1980 was reasonably buoyant Volume inthefinaiquarterof 1981 wasmarginally 
higherthan in the final quarter-of 1980. - - - 

Increased profits were derived from activities in waterheating, alloy tube, plastic 
pipe and fittings, radiator manufacture and servicing and fluid power in the USA. 
Eley sporting ammunition and IMI Rod & Wire did better than in 1980 but neither 
traded on a satisfactory basis. IMITitanium continued to grow although at a slower 
pace and was less profitable than in 1980.The Australian, Marston, fittings, valves, 
refining and U.K. fluid power activities showed some decline. There was a more 
serious deterioration in performance in copper tube and rolled metals but in the 
case of tube some improvement was evident towards the year end. 

BUILDING PRODUCTS • HEAT EXCHANGE • FLUID POWER • SPECIAL-PURPOSE VALVES 
GENERAL ENGINEERING ■ REFINED & WROUGHT METALS 

IMI p!c,P.O. Box 216,Witton, Birmingham, B6 7BA, 


«? S,»-o £6 St •? ? S»V 7 £S 8,5 n B » 5 . 3 £ n ? S B' St 



its 


Abbey Unit Ttf. Mnsn. (a) 

72-80. Lxcbov* Rd. ArtetoT 02% W1 

I«ta 

Si =gi S:S 

GiltiFrort inL 002.9 1082st -Ql 2210 

Income... _ [J10 432 ju 

lVofWni4eB«iiJ.™..rl07.6 113.5 -fli 
Iw.TJl M. UlsiS Stl -0 1 

tqurtii Preg. — 1£40 -o^ (JO 

Wien Itewj & Ross Unit TsL K im. 

«5. Conttan. London EC3V 3FB. 01+136314. 
AHR Gift Trust W3J an _ng] utt 

ARed Hanbrn Ltd. (a) (g) 

Pi'MJcrd Funds 

£H«dl« W3.0 % 4*8 -DAI 5.48 

Em. (nfc. Fund 83a "m 3 “1 fS 

sattsstw Mm If 

: SH iffj 9 

Haintro Ace. Fund ^.(2064 220q -04 4J3 

>oeonw FsA 

■ SSSBSSK=iB5 Baida 
SEffir^i-zBi g|3iil 

totanuBenl Funds 


AUTHOEESED TRUSTS 


Craigawant Unit Tit. Mgre. Ltd. 
BurideRbory, London EC4N 8BD. 01-S 

High Income ObS 39JR 

Worth tinman BM 5u3 +0. 

Canadian &wpi* .. J53 9 Sr.ffl +2. 

CaanAin 1 rea.___n«.0 47.9 -0/ 

wo Mom Hign hK.'-MJ nm *0- 

Recoven (55 J 617] -0J 

Gift Trait „ MA (tSa !Z 

■w ttUf dnwng Bay WecnnOaj. 


M. Ktemwort Benson Unit Managed 

01-2484984 20, Fendneeh Sl, EC3 01-4 

.....J 11.32 K.fi. Unit Fd. Inc. 

+0.4 2.84 K.S-UmtFtf J lc 

+2J3 3.43 K-B.FB. Imr. TstL 


S Gutter Mmgement Co. Ltd, 

n-45 Gresham StrW ECZ 

— ssffissg™? -|g| fii 

01+238000 ^JS5teBiw^'"[lZ3« 121 


-MW 

H a 


+ZJ 3.43 

P 


Qntraf* Reew-ry. 1(23° ui * .... t m 

rs'tene* Unit Mqre. Ltd. 

Pelijree !*<»., 7m*nd>>* WtdX. Kl _ 0892 22273 


dine 

. Cm.7t.tcc . .. 
IM1YM.F1L IK. 
ighYMAx 




Crescent Unit Tit Krgri. Ltd. (a>(g) L & C Unit Trust SJwrgemert LM, 
AtAeMHtCm., Edli*uegh3 031-2263492 me Slodr E*dian*. Latfon EC2S U4 5852890 

Eret. American »J 38J) -OJ1 LM UC Inc. Find >1710 17L3M . I H2 

Cm. Canal. — 25ffl . 7] 360 fc£c 1*1 t Gen Fd __|UI5 uIlM - - -I 1 H 

Cm. High. Dut 414 523 — OLU 8.76 

Cpk. Lntemai«Mtal_. &6I -Lfl LO . -r. 4 

Cm Roeinw 

Cm ndq* 


mi | 

310.7 -03 
15U -03 

220.8 -04 


Cmto5^"ZZ^I S?|:o3 s| Legal & General UMt Tit, "’gl-'J-'*- 

Uj *» 53 *M-U® | stat^ssi JmJSmS 

SS^JSR&Viiy^ *===** VI « a 


. .. . — .. _ Rons) Unit Trurt Kngt ts) 

Teal Perf. Unit Ts».|22.7 254 W SA8 AdalnWrrtkm Ltd. C*r<U* Hw^njhey Sg, EC Z_ . 0 

Discrethmary Unit FkwI Managers 2,SLMaryA*e, EC3A88P. 

a?JSSi£Si“ ll «M'!3 , t? assasL=Ba a*:.:ia mshw.?^ 

Dunbar Umt Trust Manager* Ltd- Lloyd* 8k. Unit Tit Hngrs. Ltd. f *J u Mi in. 

5% P4II Man, London, SW1 5JH. 01-9302122 Regbwjr-s DetiL &0rtn*t>?-St«. __ _ __ ____ ^ 

income & Gnrth .-1215 S.H -DJJ 7.g iwrrtlnft,WWfi««. 01«3J» Royal Tit Can. Fd. Mgn. Ltd. 

Speehasti __ — IZjSa 3!iJ -63 US Bils^d— BS^. sSs-9 SH 48-50, Cacnon Si., London EMM 6LD Q 

E. F. Winchester Fund Magt Ud. 

u wrtiHU mA7ii*n Do. (AiOiin. > 1 « i «■» TKI fr'J. Mm an Mm* K Mm uk. a. 


tsxmSB 

SpetSSst Fndt 

Smaller Co. 's Fd.. KL4 65.71 +021 3.53 

ariSmJr.Co-iFd^-. Jt5 BOrf -O SS? 

wemrenr so 1 -7 7) I 

Met Mn.fi, Cdh .._ S3J 573-0.3 h i* 

OvenNi Eaminp pOJ BU} -02j clfi 

Gmnst Fnd* 

Incurne Eanw K6.4 54^ -OJJ 7 M 

Fcr East Ese=pt — K3 6Si? -L5] LH 

Snufer C ol £z«n?l_feJ4.7 IfM +5| 3J9 

U^.A. Exempt — . — |H4.4 1».(M -lfl 3.M 

Anderson Unit Trust Managers Ltd. 

62. London Wall, EC2R 7 DO 01-638 1200 

Anderson u.r J67.4 73.DI J 339 

A uhacher Unit Hgnit Co. Ltd. 

1, Ncfcle Sl. EC2T7 7JA. 01-726 4931 

Inc. Me-ftl? Find..., IU20 172.M 1 1038 

L*taJH>»LFo. |5o 5C0| ... J 7.33 

AnUieny ttflelar Unit TsL Kgat Ltd. 

19. Wftgrt? SL, London, El 7HP. 01-247 B8Z7 
W^e-'w Gwlh Fd. Inc.. '34.7 37JM . ...1 2 . 90 

Be. A can j-B.D 48 Aj j 2.90 

A.-taiS5Mrt SecirtUas Ltd. (aXc) 

37, 0ue m SU London. EC4R 1BY. 01-236 5281 

(Aeumilaiicti} ifS.0 10U *Oj) 2fa 


92 Hqh Yield Msith 1?J63 0 
8-60 Merlin Man* 10- -1345 

(Acoia. Unit*) 11850 

1 MU 
High lot- 


SpecMSiw.... .~~|50 Si|-oa 

E. F. Winchester Fund Mngt Ltd. 


44. Btaomrturr Square, WC1A2RA 01-6238*93 g^T£K»“"” 

GiriiWindwter.__.HL9 235 J 7.40 HfSJgrf ”” 

Cl. Wuxiene. (Tirai .. 0L4 3+3 — J 339 i.-".:.-. 


Dpfcjrrrf 

IlH. TechncwiT k 


Equity & taw Un. Tr. M. tal ib) tc) Inc Technotow k 

Anenham AL, High Wycombe. 0494 33377 T'pSi'S 

UK Gwth. T il Acc I5U 6LU -OJJ 4.76 JL fESSi & 

UKGwtKTsL Inc. —[568 6LO lO 4 n fcKfHiy fi 

Higher Inc. Ta. Ace. .{Pj 638 -03 7.9? E^PKSS?- 1 


Higher IulTsl Iik...B»J blJ\ -OZ 7.08 S, l ,irSrXlC5"" W? 

| BSEag 

NttLAm*ncaTKJkcc.p7? 51 3 230 Knn 

Far East T«_ mc WJ -l3 205 Co- (Acorn. J .fuzo 

General Ta. (54.1 lOLl] -03 4.77 

.. , _ 14J Lloyd’s Lite Unit Tit 

FMelKy International Management Ltd. + sl Mary am, K3abbp, 

2Q, Abchmh Lane, London EC4W 7AI_ 283 9911 Equity Accum. (21. „ DB4J 
American b) 134.9 37.M +0^ 0.72 

&RA&Sui!LEf II =§1 mi Local Authorises* Mu 


art N. Amertcan & QmiM32 +0J L62 

| tS 

|| ^^:. 7 IS 

52 Do-CAcoanJ g33 6&0I .. . 281 

Vfo Wondwide G«th. , S3 -0.4 240 

2JB Do- (Accum.) fUZO 120. d -04 2-40 

4.77 

LloytTs Life Unit Tit Mngn. Ltd. 

"• 2Sl Mary**., BT3ABBP. 01-6236114 

Equity Acoan. (2)— 1343 2*931 -J 3« 


48-5a Cannon St., London EMM 6LD 01-236 61)44 

w®“-pn° \ m 

Pike* on March 15. Nnt onlmg ay March 3L 

Save tk Prosper Croup 
A Great Sl Helm. London EC3P 3EP 

IfiBAr AMRtWS 735i 

krtvTHdoail Foods 

teaac^tw mm il 


loeoHisa btcaon Fends 

B^Sar—l m 

oCMCZ incam .|d*aU 

KU Income Ponds 
Gm&Fsd. lot lnc._.rajl 

Sa*i=Jb 

UJt Fends _ 


mm u 
mm 1 ® 


SUM -OJJ 
74 9J -OJ 
47.M -0.1 



117.4s -12 
49; -0.1 
43.531 -0.1 
46.C -LI 
«m! -Li 
76.7 HU 
126.4 -0-2 


a GnmOiAoc. |7L4 76.71 -OJQ 4/S& 

IsaaeTr.-st dl7.6 126.3 Io3 tx 

Bn. Prl. A*ns.7sL BiiO £19 ....J 3.91 

Bo. Rsttiti* (67.4 Sfi -gj 4j4 

Do. TrmiN Find — 16*2 lOLfl -0.« 5.49 

oo.vmcniiSeTa. ka.4 5ig-0 H Im 

B SLln.Fd.Acc, W13.7 lS3 -OM 539 

Bn. Iiurmr (85.6 920) -O^ 539 

Caring Brother* & Co. Ltd. 

t. Baltop seat*. EC2M4A2 01-283 8833 

SfrajteiTitia ,_B4j T£M . — J 4.(5 

Do. ACOC7I (367 j- 233 £1 ... . j q.05 

Vert ndL day Kerch 23 fty 12C0 roci). 

Bls^C3=uats F^gressne KJgoL Co. 

Stock Exchange, Locdoo. EC2N H13. 01-588 6280 

B*BatsPr.'**IPji«h 9CSB.4 315J1 335 

tJX. CiKs'*ilaich9l3726 <073 

8’SKC I*. March 1A.BI7J 342Q-17J Ltt 

(Accun.) Karch 2 QTL* fflOSt-ZUJ LU 

Cecknun Inti Cap.-JISLI 1«37| ,77j — 
Kwt «*- cay Msrdi 23. “Manh Z1 "Weeidy dealings. 

Bridge Fund Kznegen (aJte) 
PegfcH5e.rSngWiirw3SL.EC4. 01-6234951 

Amer. Gen.f 353J J L64 

Income* — r9.7 6<3 -aa 7.89 

Ciiiiailnci 'S3Ji I7S . Z| 322 


Sftfe! M :::::] » 

Dealing Tun. JWri, rntn, tPrtm Mirf 2W4 
Brtaunb Gyu ef Unit Trusts L ££. (a)(c)(n) 

ttnwswa^" 

0K SyKtslW Ftadr 

teEi r m i 


SmaU+rtoh. K8.0 

ESSfc:-::® 

K&i tosjoa Fndf 

Nat Hljh lnc. [77.8 

Extra Jtc. |34J 

Inc. a. Growth ...,_:B.6 

FrofraiSn :_'|U6 

Sectcr S pc+bB l i Feeds 
ConnvHWjiShBm 
Flisncst 
Go!d& General 
in*, irtin Sham 
Mlnrwh 
Prop Slum 
Uim. Enemy. 

WtrUTesh. 

hjep Otis 

America Gretnh I TAJ 

Am. Snail Cas. psJ 

Am. Epsc. K». J* 1 

Far East -B7J 


-O 122 
17.9M .... J 14J 


mm 35 

mq+3J 9.20 
,65jl.-Oy 256 
+0^| 7.43 


01-588 2866 

r::J IB 

15 
:H £S 


Comm. bind. 57 A 62^ -63, 4.U 

Doevalc ra.7 529 -OJ] 4.B7 

GrocSi P20 50.3+0.3 03 

Profntkonal. .JJG3J 840. t] +L9 4.42 

S aeid. IMJ 58.8aj -43 4^ 

ESS=ffif mm ?.s 

Thu Britfch Life Cffiee Ltd (a) 

R»n2n.~ TjSrk^r Wcflv, KL 049ZZZ271 

BLCriSshK'e IJh.l 74.11-03 5^ 

BLEalan=v4 > ,*On (CXI-Oal 6.a 

BLD^ieca*- -J-JJ C.O J 340 

“Prices torch 17. Nnt deaUng Karen 24. 
Brown Stiitoj & Co. Ltd. (a)(g) 

Har lends Use. Haywards NUl Sx. 0444-56144 

BJ. OnitJ MncS 16- TO 3^L!9 J 4.76 

B.2 Aram, torch 16. h;2LJ 4fAi ... j _ 

FkOKlaJ 57 7n -02 3.78 

Grow.di Acoaa. 1-.9 JU _ojl __ 

Growth Income. iW.l MJ -OJ 2J0 

High Income U45 2^3« -0.U 1{L“S 

Income ROU JZt .._J 6.<6 

Infcs [33.3 K.n -03 533 

AHnh American- JZ2 27.1 +0J] 

Grteia 1 — 25 .C I I.0G 

TecLwiciy _.. |t4 ) t*t -C.g tS 

taen*L_: I<1J 95JJ -OJ 5.17 

BecSensster H a i M Ha a t Co. Ltd. 

The Gteck S-azrac. EE2P 2JT. 01-588 2866 

Bocklm.Fd Mw u.BaJS 89J I 3.92 

Arana. Lies, ihnth 2L,72J2 IZSig . ... 3.92 

Ctn7d. LizrohlO 324 54.U J 9S 

(4cr_ Umtsl Liar. 13. 7L3 76 3 gil 

Mxrftcro Fd. tofth toS9.4 6U4 -U J 244 
itoacn.utsJ tench IL 729 FiJ -271 2.44 
W. Ca-sTd Sfcr la47<4 539.71 ... J 2J3 

(Acorn. IKs.) Kar 12V. 47 8.6 509.7) | 283 

Canada Lif? tirK Trust filr^n. Ltd. 

2-6 High SL, Potters Bar, Herts. P. Bar 51122 

Can. Seta Da. |«6 523 -O.y *M 

Do Gen. Acam »9J 73.g -OJ J3) 

Po Income Odl u5 5 1JJ1 -OJ] Hu 

Da. lnc. Accum. - — p9.J 63JJ -0 2 .84i 

Grit &Fxd. InL Trust. (25 J 27 JW -OJ 1225 

Cipd (Ann) tSnct Ltd. 

100, DM Bread St, EC2M ISO. 01-5886010 

CaprU* 1J5&I ■■■] f0 

Income „g»J .J5-W •• -1 5S 

North American ,„.|136J LJ.lrf^.l 273 
prists w Bath J. Next deafinq Mxrrti 17. 

Carr, Sting Unit Trust tSanagwBa) 
57/G3, PrtnCMi SL, Maartsoster C61-23656B5 

sa^i Mil 

Cbarinm CharfHe* N/R Ftndtt 

15, Moomate, London, EC2. 01-6384121 

S53&«d ass |=IU 

ChariSes Official Invest Fmwttf 
77 Londoii WaiL £C2N IDS. 01-588 UU 

&sttl=l ^ Id" 

Cbteftaiu Trust Mangm LU (a) (gi 
1L New Sl. EC2M 4TP. OIJnaM. 

j Jfl 

B^cfSaurcnTst- .64.2 372* -OJ iiS 

Inpa.GnjwlhTjL~-t5-2 f'-2 

PnrI. mGibTjL^- — Blf J41I TS 

Smilto C8*s Trail «4+UJ| iit 

Chontotw Fumf MwMgSWi^ ^ 

EClntemitional --W-Y {-^ 01 

High Income P*-5 ^ 

GoaMsrBthm Fuwls Mgt Ltd. (al_ ____ 

50, Chancery Lane, „ 1 i 01 ‘ a j 2 ^ 

Growth Fond — — .|M --I *» 


01-5886010 


G» & Fiiied im 24.9 25.71 -0 

Growth & Income — yia ad -0. 

Japan Traa 2U.6 22J -GJ 

Max lnc. Eq. TSL JL3 3359+0: 

Special Sits. R0.4 444 +0. 


1311 Local Autfmrltio* Mutual Invest Tit* 
6.89 77, London WaO,EC2NlDB. 01-568 IBIS 

In Waf&My 9$ ir-i IS 

0-63 Nanernr Fd. Feb. 28 -| 74J0 | .. 1 13.7D 

“Unuthwhed. AnBaUe only to Local Authorities. 


S2JJ — J A» 


James Finlay UrK Trust klngt Ltd. 

10j4, Wen Nile Streep Glasgow. ^ 041-204 13g M & G Croup (yKcJtx) 


47.6id -OU Ltfl 
JOSS -03 1.00 
9T3 -nil ifljBi 

120 +o3 HL81 

iw"i +1-3 is 

52S -a<] 3 jo 

7iia-oi| 320 
44.3 -OLH 1L53 


.0 380 : 9.60 

•> 7LH 9 60 

Mm i!2 

7933 t02 1226 
30 -0.1 LOO 
ZLs) +0J 13.83 
4L n +S5 


-nuHer Companies 
(Accumulation)....- 

Archway Unit Tst. Mq*. LU.(a)(c) 

317. High Hcflwrn, WC1V7NL 01-831 6233 

Arkwright Hanagenient 

Parsonage Gdos_ KcnrteSer 061-634 2332 

Arkwright Fd. Kar. 9 1135-0 11L8] J 4J7 

Barclays Uniconn LhLCaHcKg) 

Unkarn Ho. 252. Rornfard I6L,E7. 01-534 5544 

Unkom America 134 S 37.0 +0JI L66 

Du.AcsLAcc. W3 «J+Ll L« 

Do. Auti. lnc. Sr.7 72? +LD 1.® 

Do. Capital ra.3 -a< 5J7 

Do. Erarpt TsL D52.4 lt33 -05 6.40 

Do. E=tra Inanoe ELI 3x*| -OJ 8.95 

Da. Finrocil „-977 3C5^ -OJ 4.K 

Da. SCO ( iC9J n;.te4-i: sS 

Do. Geftrr?l W.9 <*3-0.1 5 79 

Da. GDI A rnf. In. IkcK 6.9 oid -0.1 12® 
Cc.Gtr. Pbci.*isAcc_‘<23 <6.3 -H 1MJ 

On. Gy. Pas-Tic lnc. _ <20 46j3 -LI 0.60 


J. Friday l/rematl „ 

AtemtUnas KOJ 4LH J 229 

J- Fad» :-fqh /ncame...'3|3 <2ff ... | 925 A ' wricw 

Finlay WU. Energy -.Si* 133d -OJl 2.99 

Acorn. Units 06.1 1LM -OJJ 299 

J. Finlay Fd.ln.TM l<27 .....J SJ7 

Acoan. 11 nits j5t6 63 Jl 3 537 

Prices on March 12 Next dealing March 17. 

FnuuSagioa Unit BSgt LU. (a) 

64. London Wifl, EC2M 5NQ. 01-428 5181 CwwsonGi 

Amer. A Geo. I8L2 86.8 -0.3 L04 Conversion lr 


MAS Krfl BP lyHcJCxJ 
Three Quays Tower Hill. EC3R 680. 01-6264588 
American. — (65.7 70-6UI -OH 278 



JSUr 


(Acoan. Units)—. 

Am. Taround 

(Acoan. Units) 

Capital Tsi 

r Acorn. UnHsL 
Comertihle AG 
(Acoan. Units 
Extra Income Tratt 
Income Tst— . 

InL Growth Fd. 
(Acoan. Units) 


061-634 2332 
11L8I f 437 


01-4054300 
J SJB2 


Robert Fraser Trust Kgt LU. 

28b Albemarle SL, WJ. 01-4933211 

Rott. Fraser UL Til |7IL4 75.4 J 6.00 

Frieads Prow. Trust Ktnagsn (a)(b)(c) 
Pbtham End, Doridng. Tel. 885055 

iSI^-j! SB 


Funds in Court* 

Public Trustee, Nngsway, WC2 

Capital March 4 0464 1*9. 

Gross Inc. March 4 Si 82. 

HMi Yield Mareh4_.fl3.7 963 

ntauft. Bra r kdao to monies urder 

B.T. Udt KSsmgers LU. 

16, Flmbiiry Cron. EC2M 70J. 

G.T. Cap. Income 1147. fc 158. 

Do A S_ t So 

G.T. lnc. Fd. Uil Tf|? zSSZ 

G-T.U3.AGen 1*43 209- 

G.T. W&. Bd. Fd US.9 107.: 

G.T. Japan & Geo W7 Q ffij 

GL Pens. Ex. Fd. mi SC 

G.T. inn. Fund afi 2Si.7j 

G.T. Far East & Gen J7.6 94_ 

G.T. Tech. A Gth. Fd . 79.0 84/ 

G.T. Eimpean Fund_|9L0 97 

6.4*. Trait (a) (g) 

5 Rayleigh Raid, Brentwocd { 

G.&A. —147.1 5(L 


L04 Comenioa Income 

LD4 DMdeed 

246 (Acoan. Units) 

246 European — 

4 3 (Acoan. Units) 

433 EatraffeM__ 

am. UidtsV— ! 

. Eastern... 

832 (Acoan. Units) 

6.85 Fund of Inv.Tstv 

5 

(Adam. Urdfct— 

Jilt Income 

Acoan. Unttsi— 

UghliKOnK 

Aoaaa. Units)— 


S &FM. InL Gnh... 

Equity -.1 

Overseas Pmala IzJ 
Europ e ..... 

%FpSS~~. 

H.5 . 


CoarvodHy QJC.; 

New TechnOogy (zj . .kzj 

wamsM 


m mm 


6334 -L2I 231 


B&fB W ■I l# 

i at Math 10. Hen sub. dry March 24 


Prices a torch 10. He 
ScatWts SKoriGes Ud. 

Scotblts WJ 

Scotyiefd teC.8 


Scotblts j<7J Sttfl .._ J 3.94 

St=H HNiH «£ 

Schrader Urdt Trust Managers Ltd. 
48.5LMaitmsLane.WC2. Dealings 0705 27" J3 

Capital 116 22 174.-3 -03 2*5 

|AcOalL^Units). J J 

ySSffBB. gtj^a il 

if A if 

16* 3 -a J 269 

5*9-24 LM 
543-L4J LID 


(AcOM. Units] I 
Second General 


Trustee ■— ... 

(Acorn. Urdts)— — 

,?£■«» WS28S28~ 

lio In Pension Ex. Mar. 15 . 


mm ts 

IS ?! 1 



Spec. Ex. March 
*Eoro Ex, March 


U -23 l% Manutlft Marngumirt lid. 

1} tM St George's Way, Stevenage. 043 

% M H S Sa=* SB:::: 

*4 -13 Ol 

43 -0.3 £so Mntfewer Manawrant Co. LU. 
*7.|-24 4.00 14-18, Gresham Sl, EC2V7AU. Gl-6 

Income March 8 [1116 11*34 

General UarchS. — §577 65M 

(0277)227300 JnB-MardiB [SJ 57.N| 


503 -Oil 535 


fiertmart Fund RSpnagen UXg) 
2 Sl Mary Axe, EC3A EBP 01 

Dealing only: 01623 5766(5806 

American Trust IS-' 38.41 H 

Australian Tnat 18.4 1*J .. 

British TsL (Acc.) E&5 1166 -4 

&X9S=:W 

Extra Income Til 74.5 26.4 .. 

Far East Trust 50.7 54.6a' +J 

Gill Trust 228 23.7n H 

High Income Tst 59J 616 .. 

Income Fund — - — B8.8 Kjkt H 

Ins. Agencies £17.48 18.34 r3 

Inc. AGrth. Exempt- 1221 153.0 -1 

IlKL TsL(Acc.J 463 494 +| 

Inri,TsL(CrtL) 45.4 485 H 

Japan Trwu 293 3L7 - 

Special Sits. Tst 333 4L9* -J 

UKSn. Co. Rec. Trust. [29.7 320 ... 

Ger vett (John) 

77 London Waif, EC2 01 

Stochholdefi MarohS -{1613 17211 ... 

Do. Acoan. llah E683 2223-. 

SL European Mareh 5. .(S3 Wl ... 


McAnalt* Fund Munggnent LU. 
B> Regis Hie, King WIBIwn SL, EC4. 01-t 

01-6236114 Delphi lnc. Til ACC.-B5.4 39.41 

Delphi lnc. Tit. Inc._.|l.3 27.il . .. 

■?3 u B(aSE = W 

-0.7j 114 

-0-0 3-14 Minin Fnnri Hnonaii IM 


...1 1382 Sarttsh Aesictide Im. (Sngn. LU. 
-lO]5 150 St Vincent Sl Glasgow. 041-2482323 

I - -I 7 05 Eooity Trust Accum. -[11 L3 1201( -0 4 513 

Scottish Egcttata Fund Kp-*. Ltd. 
043856101 28 SLAmfcwSg Edinburgh 031-5569101 

I 4 « Income Units 1443 Mtti eO J 513 

j JS Accum. Units [85 2 90.61+03 5.0 

1 ---4 Dealing tty Wednesday. 

M. ScntSth YKdswc* Feud ME^zgement 

01-60680*9 P.0.Box«02. Edinburgh EH165BU 031-6556000 
J B n PVgasui TsL March 16. |99.4 2360-04 - 

: :;:j 3.95 srmco Mpuey Finds 

66, Cannon Street. EC 4* 6AE 01-236 1425 

Lid. SIMCO Call Fiadt .. .1100.0 — I I 13.74 

mj^saosi SIMCO 7-0av rirdi .[lCQil — I .... J llH7 

I j ra SIMCO 3 FI 1 7 tojr Jumo* - j. 1 14® 

i IS tUaaeaoroW-55 Droom Finds. 


Mercury Fund Hangars LU. M* 

3q, Gresham St, EC2P2EB. 01-6004555 Withdraw* Umu .._. 74.7 

LM Geu-Dla 063 9274-0 «.10 *3reiSh_t^ptel 2021 

pi Gen, Ace. I2B.1 lJ7.g -53 4J0 Aaesn. UnTh.^ Ml. 

ESO lnc Rec. 57.8 62jj -53 7 JO **EinwarFurxf.,.-.FB3/l 

I Mi- MJ 9£« -83 288 Butt. tTues. 4 Fh. *V 


Stewart Unit TsL Managers Ltd. (a) 

45, Chariott* Eq., EdMugft. 031-2263271 

tAmencan find B83 9*.?J -LOI 203 

Mcaan. Urxfc — — q5 9 1020] -12] — 

Withdrawal Units [74 7 70 it -o.ra — 

aas*.®!* - --- s w 




Ase=m. >Jn!h._- . -.Wll 24ia -171 — 
-European Fbntf...„B3.4 89 8] . ] 263 

DxaJ. tTues. 6 Frt. *Wed_ **Mw. & Thur. 


BRdland Bank Granp 
Unit Trait Managers Ltd. 


GauriMMdJtauKi Stiver Street, Head. nu . ' 

Sheffield, Sl 3RD. Tel: 074279842 S™ 1 . “ 


Sun AlSnee Fund M anzg gwrent LbL. 

Sun Alliance Hse , Horsham. 080364141 

Swiss Lite Pen. TsL Man. Co. LtaUaXc) 
9-12 Cheapside, Londarv EC2V 6AL 01-2363841 


Next dealing March 1*L 


Srievesga Management Ca. Ltd. 
59 Gresham Sheet, EC2P 20S 01 

Barringtoit Mwch 10.(358.6 359-9 ... 

f Accum. Jnts K "- ■ 

Br’gn. H.Y. Mar. 11 

E&ttas 

(Accum. Units) — 

Endear. March 16 
'Accum. Units) — 
brentesir. Mar. 12 
(Accum. Urtts)— 

JL & Brusv Mar 
(Accun. Units) 


gtoTmi'ib. 

| .] 2w CormSlHyiGeinu.’^ 

Do, Acc, 

_ GBt&rxri. Int 

Jbo. Da. Acc 

01-6064433 HIFlVWtt 

(M Do. Act. 

?S IffTL 

2gi JaMnaiidPadfit^Z: 

ill) 1264 Da Acc. 

+19 2H North American 

.... 4J0 Dd-Att--- 

CjS Overseas Growth 

-226 217 Spilpf Ekorgil* — . 

9 %7J Do. Acc.* 

1 ™ •?«!» a March : 


;::::] ii 

Fixed InL Aec-tj. — 007,95 111® ..} 13. 

•Prion On Mbch M. Next dealing Apnl 1*. 
IPriees a March 12 Mart deahng April 7. 


Next deahng March 19. 


3-28 Mhnter Ftmd Managen Ltd. 
Minster Hie. Arthur St, EC4A 98H 
. Mknler FUrthlS — 1467_ «L 


_ M| - „ MlM ... Hie. Arthur St, EC4R 98H 01-623 1050 

Gtarasn Royal tx. Unit Kgrs. Ltd. Mmrter March 15 -_I46 7 48.71 J 728 incaroeanpfarowtn... 

Royal Exchange, EC3P3DN 01-6288011 ExI^t ISiStfL.-BSai iSjj J IM 

(ag) GuardhM Tsl._..( 135,0 139*d( -031 424 

„ .. . . , . , .. MLA Untt Trait MngtnnL Ltd. grttyfitoMwU 

*J® lri ** f *J ‘ c) Old Owen StreeL SW1A 9JG. 01-2Z26G77 brfiM HY #^rch 17 

Promu^TAdmin. 5. lUyleUP, MLAUnte J10L3 106J( -0* 336 CarlW Acc. to^j» . 


£u Target Tst. Mngn. Ltd. (a) (g) 

fj5 33, Gmham SL, E.C2. DwHngs: 02965941. 

7jg WJ +aa ^ 

gjEBScE^ lii 
H festsrzSi sHsi is 

I™ Pacific Re Imr,.., 06 M.9J -Oil 119 

*- Income-..^.. 33 (t 33Jjd +0 U 764 

Extra Income 524 563ri-0Hlli6 

Preference ShBre — . 1L9 123 . . 1 EliQ 


Acc Mar 17. 
V March 17. 
c Mwth 17 _ 


.Trad rime see 


c a Sseoai ar.u ... J2.4 

4.S Gw=wri- UntaV. 564 

4.G7 5’ 


Cip. G^wth BJj 

Acc. UrJts QQ2-2 

lnc. & Awn (394 

fSEh i wa cw Fund* 

lit A Growth _.(58-5 

[ Acclti. Units)—. MS 

High income 723 

Extra lnc 59-2 

Smaller Cm. Dlv. 49.6 

Pref.iSH. 305 

Ga Trust STS 

Fixed Interest *6.9 

Seder Fan* 

Rroncal I5L1 

OUiNaLRn. 1512 

fute: national 

GlaM Teen. K.7 

irtenadanaf™ M3 

World WU* March 5.|14*.4 
Ownen Faed* _ 

Australian .1573 

European G24 

Japan Trust ._. 33.2 

Pacific Sm. Cm. ,77fl 

North Amer. Mi 

American Smaller H3.U 

Exsrmt 7xPdi 
Kirn Inocme Ttal 
Smlr. Ccs. (bi 
Emeeanuich 
Japan Karen 12. 
NnrthAmer. March 12 
GMal TedKMto» 

Paclilc Exempt fa. 


Hexagea Eervlaes Ltd. 

4 Gl Sl Helens. Lowtoa EC3P 3EP 
Brewinlnd.Gr.lne.-K92 51 


HW Samuel Unit TsL Mgn.t (al 
45 Beech SL, EC2F2LX 
(b) British Trust, 
hat Trust 
larTriKL- 
&xro|eai Trust 

FVnncW Trust 
«&F»LIBLTSL 
Gilt F.l. Growth. 

High YWd Tfl 
ncome Trust. 

InlT Trull 

NaL Resources fa 
SeoeityTroSL.-, 


,« Murray Jrtnrtoae U.T. KgnL (a) „ . , U * 

2U 163, Hoc? Srne*, G'JSOCV, G22UM. 041-221 5521 Tredn Utdan UnK Trait Mamgcn 
Sj4 Murray European _,|iSD.9 ffi *] . ...J 3.«S 100, Wood Shed. E.C2. 01-62B80U 

L91 Mwray SaJcCos. SL_|1 Sj 763) J 274 TUUTMarohl 1622 66.24 .. ..) 5JI9 

lh TrawBtn ac and Gen. Sacs, (c) (y) 

Mutual UeK Tnsrt daemon (all?) 91-99, New London Rd^Oirinisford. 0245-51651 


Mittal L'ritt Treat Maeeson (8)1-) 91-99, New Londor 

5^ Broad SL Aw, BAnuflcM St, EC2 01-633 3911-3. gS»Wcw.rfetCh 11 
fffi Mutual Sec. Plus. — JW.J 53.n _o a 7.75 wik" 

§ SSl& T &“|i 11 ?| 

#71 MuhtiHi^YSl—gLs Wk -at iM ffiSS'fWSi 1 


«gSJSffa 

(»feroh9. 

Vangi TsL March 10 
(Accum. 


M fM B U 4 5:3 

l&Sl T?! bS National Provident fcrr. Mngn. LU. 
L.«_nai >nc 48. Graraehureh SL. EC3P 3KH. 01-6234200 

f 31 S | 

45-g-Ojq CUE CAcoxa. Units)". 523 S5S’ .1 2® 
Jin -eJ G.60 -Wees on Rsb 25. Next drding torch 25. 



KTtfewti WertKirrt-r 
^941 V& 161, Chsipside, SCSV CTJ. 
□:“ gggrrje ef-L,-"^ 

;S3 tS gSf-=® 

i -Lli O-fti £“*57 ■ 

i a-h Im 

I pff wt* ... . 

1^8 18 issisiiS-Ti 


(Acetxn. llriil) 

Trrdafl Mmagtri Ltd.Ca)f(j)(c) 


C <;5j +ai oTa 

h 

QJia, +OJJ MO 


-0-‘ 107 North in-Gw-JuTs. 

H ... 33 Portfolio If. Fd 

«■ .... O-fO Recover* Trust 

76.61 — IM Smaller Companies 

■ 03 ^ NEL Trust S!ix?3?rs Ltd. (a) (g) 

MB ton Court, OerttnjL! Ssrroy. 0306 687766 

5L8I ....J 4 JO NefKAr Kigh Ice. — JS-I COM -fli 866 


4.49 (4coan. Units) 

if* Prtf 

1^ f Accisu. Units) 

® i L 2S griiasc 

,nLZnn trnS 


»aH 


(Accun. Urits) 
Gill Income 


Nristar liMrnsUaaalJ 


M ^ 8 Merthgatv Unit Trait Kusagcn LU. feJ(y) 
“S fl IS 20, Meorgatc, EG2R 6AQ 01-6064477 

“■U vxwaMDi* M ipH* nrtL n itsn ■ cn 


§ aesansa^oi m=i ® be™ 


Natural Seymrces. 
Accun. IPttD 
ir m , int..,.. 

Wn. Wall Cop Gwth 
uhl UnttsL- 
__ w«n. E«- 


£££». xm * isy-==i 


Norwich Codon Insurance Group (b) 
P.O.Box 4, Norwich, NR13NG. 060322200 

Group Tst FUrd.__(51H 531.04 -22[ 5J9 

Pearl Trait Mzccgvi LU. CalCglU) 

Z52 High Hdftwm, WG1V 7EB. 01-4058441 

ss s»nt=m ut 


HK Unit Trait Managers LU. (a) 

3 Frederick's PL, DM Jewry. EC2 01-5884111 

SlE»idB.' 2S3r.^iia 

HK Far East &Gn. 

HK Growth TO-. 

HK Income Til. 

HK Market Leuen 
HK Private Tsl 
HKS ortierCo'iTiL 
HKTechnriogyT' 

investment Bank of irtiand (a) 


Pwri Unit Tsl fc 

(Accun. Undx) J] 


Patton Unto Admin. Ltd. (o)(x) TS8Gew™l 

57-61 PMxcms St. Manchester. 061-236 5685 S&nSSL' - 

PeDonUrttfc P35.9 146? -04[ 4.75 KTCS T 

.. _ T5B Pscffic ...” 


K ara. Units 
MMHIMcPMTy 

urn. wan in#. 

Ldn. Wall Spec- 5Ms. 

TYndfl 4 C^-Cepoitt Farms 

D n u an d Fuad*, _J — — I ... I 13J7 

Money Find*-,- — 1 — — 1 . ,J ittn 

riJiuBilwiwiU- Cash Depud |W 

TSB Unit Trasti (U (sl (yl 
- PO 6ox3, Keens Hw, Andover, Harm, SP10 IPG. 
0264 62188. DwIIto lo 0264 63432-3 
TS8 American |43J 40 +fti1 254 

Do. Acoan.- K10 e£3 +53 254 

TSB General Mi 693 -33 Sir 


Pcrpctaal Unit Trout MngrnL (a) 
48. Hjn Sl, Henley on Thames Ori 

Income (655 70. j] . . 

W wM w h te Recovery .p7J 50.4} -0. 


(l) Do- Ac oan. 


Ulster Bank (a) 
WSnng SbMI, Belfast. 
(b)UUer Growth 


-03 4J7 
-o| 7J1 
-OS 7 11 


SSSWf ASS- SSSSST. bSSJ-" 1 

1^2^17.^ BSEtt^dW M -:-.J £3 

S5?SSS?S. > S9BSF a L “* ^ASiura Pratindti Ufo Imr. Ca. Lfai. __ , NOTES 

01-2476533 Prism V* m pence unless otherwise Indfewed. 
48JI-0.B L» '^^(F^miraoriumn) allow lor all buying 
57 i -01 TS expenses, a Offered jincei uickra aH expenses. 

*L CM -%*. IS « 1 n«M t»»4 m eHtT^ra. 

< Jl 4 -OJ 3fl d bimmtL o Today's opening pnte 

S-| “S^ JS b PBt nbuUon free of IIK Laws p Peruxkc 

OR tfll iS lrtl lG n *, * 5n * ■"■to* 

nnra an 48.B -CM 3JH Inanra. X Wfrred price Includes evpeiws 


Invertmtnt Intelligence Ltd. (a) i l. iu. ■_ r_ i*j 

1/3 Worship SL, EC2A 2AB. 0L6286626 S«22LS2*» * 

Uxri.Amer.T^H.,M.< fi-SI ^»l ' 

wM&&rJ , i Hid IS R®fiE 

isagsifisrfdSu i2a*a sa RBiat 

Key Fund Managm Ltd. <a)(g) Pronto nth. Amer 

1, Pauroomer Row, EC47DH 01-248 3*99 p^ime 


S&X 

IgK 

Key Fixed Ii 
Key Small C 


(Fund — 76.6 
InL Fd-^ 47,1 
Co's Fd 175.9 


Mxi i «&£-• - 

mZMm RS1X 

vi i airni Pronnc n#l Amer 

*■ UK 3 , 1 Prolific Spec Sla . 

a 0 Ag*H Prrimof£6riw.-]45A 48.81-061 100 Wrance. sTweSf 5ST,nd«5T3f 

52? Prud(< Po rtfl Bo Mngn. Lid. (a) (b) (cl alf rxpmc?lf boughtltorngh mnamS* Pmlon 

::::" 9J9 HonscmBarv, EOR ZHN. 01-4019222 days price. 1 Guernsey wins. # Sopended. 

. ... 14.:® PradentUi 0720 1823 -OS 4*0 ♦VJefd before Jersey u*. t EjMubdHrtMon. 

+0.4 442 Vairtn»gh Gilt [1023 1064 -33 1U0 U 0"7 arolltile to chantaMe bodies. 


Dollar improves 


THE POUND SPOT AND FORWARD 


JJga ■ ••( ;-Si GromeiWS Fail.. [96.1 1C2-3 “OJJ 537 

• [ ?C« Ca-Cxde T-l 'Acl)-i 5L3 tG.Tr — 0.3 497 

IIS:':" 111 s£sSTrt.f£r:.p3a sas-oJi «*r 
76« :....! 4 *4 iBjBefiefd MaiagsiRCiit Ltd. 

1 Finsbury 5a, EC2A IPO 01-5836906 

L & C Unit Trust Mwegetnert Income UT,.„.„. P6J 8JH . . I 103 

Tim Slock ExthAML London EC2N UA 5852890 Irwrnathmal Ui - .1*7.4 ll»c r] *p iS 


RotbscUU Lsstt Ma w a ggegirt (a) (g) (3) 
72-80. GaMhoose W, Ayleihay. 02% 5«1 
N.C. Engy Fes Tit- . 1136.9 1«3 it +051 ) 48 

iff luxraFi 1631 1715 -G? 1.K7 

M.C. Inff Fd Ineif. .... 07. j uPt +l?j 12* 
rt.C. Infl Fd \bstt . . [1335 1CJ +1S 129 

Smaller Cos (65.1 ViZ* . ” 4 IB 


01-40610% 

I -id im 


The dollar continued to 1m- 
prnvp in currency markets 
renerday with trading once 
a sain dominated by interest rate 
movements. UA Federal funds 
rates remained firm while Euro- 
dollar rates were over a quarter 
of a point up from Monday. 

Starling followed In the wake 
of the dollar helped by some 
switching out of some of the 
more vulnerable European 
cuTTencics as well as the attrac- 
tion of relatively high UK 
interest rates. 

The French franc continued to 

loan ground within the Europe an 
Monetary System, yesterday, 
attracting support from the 
Bank of France by direct inter- 
ventmn in the foreign exdum^e 
market and higher domestic and 
Euvo-franc interest rates. It 
remained well within its diver- 
gence limit however. Other 
currencies showed little overall 
change apart from the Belgian 
franc which was also weaker. 

DOLLAR — Trade weighted 
Index (Bank of England) 114.0 
against 113.6 on Monday and 
108,4 six months ajto. Three- 
month Treasury hills 12.74 pier 
cent (14.26 per cent six months 
ago). Annual inflation rate 8.4 
per cent (S.9 per cent previous 
month) — The dollar rosn to 
DM 2.3775 from DM 2.3735 
against the D-mark and Swf'r 1.S8 
from SwFr I.S770 in terms of 
the Swiss franc. It was also 
firmer against the Japanese yen. 
rising to its best level since early. 
August last year at Y241.40 com- 
pared with Y24035 on Monday. 

STERLING — Trade weighted 
Index 9(1.6 compared with 90.7 
at noon “and the opening and 
90JI on Monday (88.6 six months 
ago). Three-month interbank 
13’ J per cent (145 per cent six 
months ago). .Annual inflation 
12 per cent (unchanged from 
previous month) — Sterling 
opened at $1.8100 against the 
dollar and had eased by noon to 
si.SOfin. Tt touched a low of 
St. $035 during the afternoon and 
closed at $1.8050-1.8060. a rise 
of just 5 points from Monday’s 


Close in London. Against the 
D-mark it rose to DM 4.2950 from 
DM 4.2850 and SwFr 3.3975 from 
SwFr 3.3900. It was also firmer 
Against the weak French franc, 
closing at FFr 11.05 compared 
with FFr 10.9950 previously. 

D-MARK— EMS member (cen- 
tral position). Trade weighted 
index 122.6 against 122-5 on 
Monday and 119.6 six months 
ago. Three-month interhank 
9J75 per cent <12.425 per cent 
six months ago). Annual Infla- 
tion 5.8 per cent (6.3 per cent 
previous month) — The D-mark 
was slightly firmer overall at 
yesterdav's flxrnc in Frankfurt, 
The Swiss franc fell lo DM 1-2647 
from DM 1-2666 and Ihe French 
franc to DM 3S.8300 per FFr 100 
from DBT 39.9500. The dollar 
was firmer, however, as Euro- 
dollar rates rose and was fixed 
at DM 2.3790 against DM 2.3675. 
Sterling was also firmer at 
DM 4.3010 from DM 4.2790. 

FRENCH FRANC— EMS mem- 
ber (weakest). Trade weighted 
index 7D.4 against 79.6 on 
Mondav and S4.6 six months ago. 
Three-rcnnth interbank 141.5 per 
cent (17J per cent sis months 
ago). Annual inflation 13.9 per 
cent fl4 per cent previous 
month) — The French franc con- 
tinued to weaken in Paris 
yesterday. There may have been 
some reaction' to recent local 
elections which .vhowed a shift 
a wav from the governing 
Socialist party and also specula- 
tion over an EMS realignment. 
However, evidence to support the 
latter remained scant for 
although the French franc is the 
weakest currency in the EMS it 
is currently well within it* 
divergence limit in fact it is 
almost half way between the 
upper and lower limits, and 
against it* major trading oartner 
West Germany it was fixed at 
DM 3R.9500 down from 
DM 38.94S4 on Monday but still 
above the floor level of 
DM 3R.ifif)0. The dollar rose tn 
FFr 6.1230 from FFr 6.0S30 and 
sterling to FFr 11.0655 from 
FFr 10.9840. 


Day'* 

March IS apraad 


1.8)35-1 .8140 1.8050*1. 9MB 
2,1940-2.2030 2.1SS5-21SB 


U.S. 13035*1.814 
Canada 2,19400;203 
Ncthlnd. 4.» 1 r4.72 , i 
Belgium 79.40-73.90 
Denmark 14.40*14.46 
Ireland 1. 2160-1. 222 


4.70*4.71 

79.70-73^0 

14.40-14.41 


W. Ger. 

Portugal 

Spain 

lluly 

Norway 

SrancB 

Sweden 

Jinan 

Austna 

Switz. 


1.2160-1-2225 1.2170-1 iW6 

4-2B-4.31 4.29-4.30 


126.60-127.60 128 6O-128J0 
188JHM8900 188.25-188.45 


2322 2329 
10.83-10.00 
11.04-11 .08 
ia5)-10.55 
434-441 
S). 12-30.27 

3 JVrUl>a 


2322-2324 

10.86-10.a7 

11.0ti.-11.Kij 

10.52*10 53 

43S>i-43ti } 

30.15-30.20 

3KV3,40>* 


Rollin' 1 ti»(P *i (a» oruvcrtibie 

Sii-nic<-t.i Im ui ti.niar 1 07 


% Tbraa 

One month ■ p a. nunitw 
“ftSSStadk " -1^7»"0,W*i7«n 

0JS-04&C die -».« 1 K-1 JfidW - 
2>r1-«c pn» - .4.78 
7-170 dM -1W3MS«* 

lVS'.-ora dia -1.B2 6'«-7V d>« • 

0.BT-Q.73P dts -B60 I.XM.OHte ■ 

IV-1'aplpfti- 4.19 4lj-4 pm 

70- 190c di« -10.41 3tXM06 dta - 

2&4&C ma . -2-07 TKMWdi* . - 

18-21 lira <ti> “10 Q7 54-B8d(a 

Vl-'tOra dra AS7 4 VVi4i • 

t-Bc dn -7.60 lft-18 dis * 

7 Wire pm • 1.42 3>2)i pfli ■ 

2.75*2.45y pm 7-15 7-44-7.13 PRT 

16-l2gro pm 5>57 3f-27 pm 

P-2c pm 7 S& (Pa-SVpm 

rr.inrs. S87MBK 

■7.77c d ; s ti-vnwKIi 2 di|.' 


THE DOLLAR SPOT AND FORWARD 


Day's "• . Throw . ^ 

Mareh 16 spread Close One month ‘ n" month* - "'p.| 

UKf 1 .8035- 1^8140 ~1.8050*1KK~ 0.22-1L32C 0.774L*7«e~-Vj 

Irolandt 1X785-1 4885 1.482S-T.4840 0.65-0-5SC pm 4.88 1.8S- 1.B9 Pffl 4.J 

Canada 1 -215S-1 .21 80 1^165-1.2170 0.06 -OKe die -0.74 0^2^,2*dt» -B.) 

Nothlnd. 2.G020-2.6100 2.6050-2.6080 1.43-1.33* pm 6.35 347-3.77 pm SA 

Belgium 43.95*44.61 44.S9-44.61 1epm-3dis -0J7 1 pm-3dt» -q.c 

Don mark 7^770-8.0025 7.BBS0-7.99EQ par-0 ISora dla -0.11 pai-0.60dv* -0.1 

W. Gur. SJ3775-2.3825 2^770-2.3780 1.2S-1.20pr pm 6.18 3. BO-3.45 pra B I 

Portugal 70.00-70.55 70.1S-70.W 30-35C dir -TO.® 66-200 die- '-OC 

Spain 104.10-104.40 104.30-104.35 par-10e <ha -9.W 25-40 di* -ij 

Italy 1284V12S7V 128BV12B7*- 9>*-l0llr« dls -8-97 24\48Vdla -74 

Norway 6.0CKXM.WOO 6.0W-6.0200 DM 40 p« pm 0.» 0.3Q pm-per 0,1 

Franco 8.1000^.1326 6.117S-8.12S 2.75-3.50e die -6.12 6.00-7JSdlS -« 

Swadbn 5.8120-5.8380 5,8200-5.8300 1.60-1.«Sorn pm 3. W 4.35-4.20 pm. 2J 

Japan 241 J25-242.50 241.35-241.45 1 .85-1 -70y pm S 05-4.90 pm 8.2 

Austria 16.68-18.73 Vi 16.71>rlG.72>> llVIOqro pm 7.52 2B\-23\ pm 6.8 

Switz. 1 ,8725-1.8870 1^735-1^805 1.58-1. 50c pm. 9J3 4,154.07 pm 8.7 

t UK and Ireland are quoiad in U.S. currency Forivn'd premium* and . 
discounts apply to the U.S. dollar and not u Ihe individual currency. 

CURRENCY MOVEMENTS CURRENCY RATES 


W. Gor. 2J3775-2.W2 

Portugal 70.00-70.55 

Spain 104.10-104.4 

Italy 1284V1287% 

Norway 6.0000-5.020 

Prance 6.KW0-6.132 

Sweden 5.8120-5.836 

Japan 241^5-242.5 

Austria 1 6. 68-1 6.73 V 

Switz. 1 .8725-1.887 


p it. month* . . - 'p.i. ' 

-179 0.77*0J7«e~ -IS 
4.88 145-1,80 pm ' 4.25 
-a?4 022-aZHtr -0.79 . 

6.35 3JI7-3-77 pm S .« 
-0-Z7 1 pm-3ih» l 
— O.lt p*i-0.60 dv» —0.12 

6.18 3 . BO- 3. OS pn B UT • 
-10.65 66-200 dir -xgg 
-5.57 2540 dir , ' — ljg| 
-8-97 24\-26Vdl« -744 * 
0® 0.30 pro -par O.W 
—6.12 6.00-7J2SdiA -4,33 
3.14 4.35-4.20 pm 243 > 
BJC 5 05-4.30 pm 
7.52 MV23V pm _ 8.0« ' 
9JB3 4.154.07 pm 8.74 


' Bank of • Morgan 
' England - Guaranty 
: Index Changea% 


BnnK 1 Srraolal lEuropean 
Mar. 15 . , rate , Drawing [ Currency 
: % Righta ; unru 


Sterling....... 

U.S. dollar 

Canadian dollar.... 
Austrian schilling. 
Belgian franc.... — 

Danish Kronor 

Deutsche marlu... • 

Swiss franc. 

Guilder — 

French franc. 

Lira 

Yen 


90.6 , 

114.0 
88.5 • 

116.4 ■ 
86.0 : 
84.1 
122.6 . 
154.9 ' 

115.1 i 
79.4 1 
64.9 ; 
135.7 ■ 


Baaed an trade weighted chang e#, tram 
Washington agreement December. W1. 
Bank of England index (base a v a rag a 
1875-100). 

OTHER CURRENCIES 


Starting.^: - 

U.8.6. - 13 . 

Canadian S.. 15.06 
Austria Sch. EV 
Belgian F — 13 , 
Danish Kr.— 11 
D mark..^— ' 7>i 

Guilder..; Biji 

French Fr.„. 9i«- 

Lira_ 29 

Yeti ..... 5i 3 

Norwgn. Kr. ‘ 0 
Spanish Pts. 8 
Swedish Kr. 10 
Swim Fr — 6 


0.625460 
1.12664 1 
1.37225 . 
18.7248 ; 
49.4060 ■ 
3.93960 1 
2.66752 
2.92250 ; 
6.85535 ; 
1442.10 : 
269.402 > 
6.75308 . 
117.058 
6,5-3733 , 
8.10659 ■ 


o reek Dr 'cli- 20 1* ^ _ 


0484887 

UQlBOl 

1J4005. 

IB. 9608 

44.S8B7_ 

410949 

2.41 S48 

2.84039 

6.197211 

1306.11. 

843.SSSm 

6.10709 

105.W6 

6JM80 

1.90098 


EMS EUROPEAN CURRENCY UNIT RATES 




Currency 

% change 




central against ECU 
rates March 18 

central adjusted (or 
rate divergence 

Divergence 

limit 

Bellian Franc ... 

<14.6963 

44.7752 

+0.18 

+0.18 

+1.5440 

Danish Krcna ... 

8.18382 

8.11071 

-0.89 

—0.89 

+1.6428 

German D-Mark 

2.41815 

2.41316 

-0.21 

-0J1 

+1.1097 

c ri>neh Franc ... 

6.19564 

8.21237 

+027 

+027 

+1.3743 

Dutch Guilder ... 

2.87296 

2.64559 

-1.02 

-1.02 

+1.5069 

Inch Punt 

0.886799 

0.685172 

-OJ24 

-0^4 

-1.6639 

Italian Lira 

1305.13 

1305.84 

+ 0.05 

+ 0.06 

+4.1242 


Changes arc for ECU, therefore positive change denotes « 
week currency. Adjustment calculated by Financial Times. 
Steriing/ECU rale lor March 16 0.561340 


Argentina Peso.- 32.968-88,97611 l8.7G0-18.7Ut ; Auitria„^— 
Australia Dollar-.. .1.7030 1.7060 J O.9435C.044Q , Belgium.^— » 
Brazil Cruzeiro... .i 862J24 263^4. 145J18.146.01 • Denmark 

Finland Markka..' 8.8088.227 1 4.6590 4.5610 -France 

Greek Drachma- 1D8.8S0.U8.1E1 I 61.40.5l.ti0 ! Gem. iny n .. 

Honq Kong Dollar 10.491 10.507 i5.B110-5.8160 '.‘Italy 

Iran Rial- 147.40* ■ 81.70* -Japan 

Kuwait Dinar (KOj: 0.5120.518 ■ 0^8458^347 i NetheHands 

Luxembourg Fr... 1 79.70-79.80 ] 44.59-44.61 Norway 

Malaysia Dollar... 4. 1975-4 2040 1 2.32502.3270 ■ Portugal ... - 

New Zealand Dir.' 2.3225-2.3265 1.2860 -1.2880 Spain 

Saudi Arab. RiyaT 6.16-6.22 : 3.4 1B0 -5.4210; Sweden- 

Singapore Daluir.3.8530-3.B3B0 2.1230 2.1250 i Switzerland — 
Sth. African Rand 1.8660-1.8680 ; 1.0555-1,0545 United State*™ 
UJL.E. Dirham . .. : 6.82-6.68 . 3.6715-3.6736 Yugoslavia 

t Now ana ma. » Selling rate. 


{ Nota^rtea 

■"mwkuo" 


14.41.14-.S5 
■ 11.00-11.10 
AjmAM 
8300-2345 
438443 
.684* .4.72 
10JM.10.I 
- 185-189.* - 
! 183-1* -1951( 

: 10.48-10.58 
3^7 4* -3.411*. 

i 1.60-J.aa. 

. - 85-99 • 


EXCHANGE CROSS RATES 

Mar. 16 : Pound St'rling U^. Dollar ; Dautschem'lc Japan’s# Yen Frenchrranc Swiss Franc , Dutch Gulld'i Italian Lira Canadla Dollar Beslan Franc 


Pound Starling 
U.S. Oollar 

Deutsehemark 
Japanese Yen 1,000 

French Franc 10 
Swiss Franc 

Dutch Guilder 
Italian Lira 1,000 

Canadian Dollar 
Belgian Franc 100 


4.293 i 436.0 
2.379 j 241.5 


11.05 J 3.398 
6.130 1.882 


2.196 i 79.75 
1JI1S _ I 44.17 


i 3.887 
j 1.264 


1.38S j- 683.7 


0.467 f 


198.5 
546.3 ! 


; 1058. 

I- • 2913.' 


FT LONDON INTERBANK FIXING (11.00 a.m. MARCH 16) 


5 months U.S. dollars 


6 months U.S. dollars 


bid 15 8(16 , offer 16 7( 18 L Ud 156(18 !. otter 15 7/16 


The Axing rates are the arithmetic means, rounded to the nearest one-abetoanth. 
of the bid and offered rates for SlOtn quoted by the market to live reference banks 
at 11 am each working day. The banks are National Westminster Bank. Bank of 
Tokyo. Deutsche Bank. Banque Nationals da Paris and Morgan Guaranty Trust. 


EURO-CURRENCY INTEREST RATES (Market closing Rates) 

! Sterling Canadian i [West German: * . 

Mar, 16 U.S. Dollar Dollar Dutch Gullderj Swiss Franc | Ma rk ^ French Franc j Italian Lira 


Short tarm : 

7 days’ notice ! 

Month , 

Three months ... ( 
Six months 


13 ig- 14 in 
137 B -14l B 

13sn-13j* 

1312-1358 


One Year. I 131 s-135b 


1688-1558 

1518-159* 

16U I6la 
1514-161* 
15U-16I* 
1518-1538 


Canadian 

Dollar 

16-17 

16-17 

15Vl6'a 

lS’*-16ln 
15!. -16r» 
16-1638 


20-30 

20-30 

20-22 

1912-21 

19-20 

18L>-191t 


81-24 
24-26 
231* -241* 
22?a-23i 2 
22 ip -2 3 
22i*-E35a 


.Belgian Franci 
I Convertible Japanese Yen 

j 12-15 j 5ia-7 

14le-16l Z ; 6^-7*. 

1 15U-161* 67 B -7 

I 15 16 • 6W-6S 

15-16 * 64* -67b 

;• 15-16 J 6f<-6rfr . 


Bfr (Hnjncial) : short-arm 12-13 per cent; savin days’ notice 13V13‘ 2 per cent; one month 13V13 7 i per cent ; rhree months ltia-14 9 * per conu six months 
Id Vic 1 * par cant; cna year 14t«-14*j. ...... 

5D8 IrkBd deposits: one month 13V13 1 - per cent; three month* 12V13 1 * per cent: six months 1 3 1 *- 1 2** per cent; one year ISh-IJi, per cent. 

ECU linked deposits : one month 13V12’.i per cent; three mantis par cent : nx month* ISHt-IS 11 ]* per cant : one year per cent. - 

Ayan 8 icfoiing rates In Singtoore) : one monrn 1j<«-1i^ per cant: ihrae m coins 154-1 3>a per cent: s>x months 15H-15J per cent; one year 13>i-15i» per 
com. Long-term Eurodollar two years IS^-IS 1 * per coot; three years 15V15V per cent : four years l-i'j-IS 5 * per cent: five years 1SV15** per cent nominal dosaig 

rates. L-iirt-ierm rale* are call lor U.S. dofiers, Canadian do'let* and Japanese yen : others tvra days’ nooce. - . 

The Itilowing rates were quoted lor London dofiar certiticatos of deposrt ; one month 14.90-55. CO per cent i- three months 14.30-15.60 par cent ;'aia rotmihe 
14. 95-15. G5 per cunt: one year 14.90-15.10 per cant. 


MONEY MARKETS 


GOLD 


UK rates higher 


London clearing bank base 
lending rate 13 per cent 
(since March 12) 

Interest rates continued to rise 
in London yesterday, reflecting a 
furl her rise in U.S. rates. Three- 
month sterling CDs were quoted 
at 13} per cent up from 13J3 per 
Lent and discount houses buying 
rates on three-month Treasury 
bills were higher at 12 A per cent 
against 12 i per cent Three- 
month Interbank money rose to 
13H per cent from 13A per cent 
Short term rates were virtually 
unchanged from Monday how- 
ever, after the Bank of England 
more than compensated for the 
day’s shortage of funds. Over- 
night money touched a high of 
14i per cent daring the day but 
finished at 2 per cent. 

An initial forecast by the Batik 
put the day's shortage of day to 
day money at around £500m, with 
bills maturing in official hands 
and a net take up of Treasury 
bills accounting for £459m and 
Exchequer transactions a further 
£70m. On the other hand a fall 
in the note circulation added 
£80m to the system. The forecast 
was later revised to £550m and 
the Bank gave assistance in the 
morning of £198 m. This com- 

MOfiEY RATES 


NEW YORK 

Prime rale 

Fed. lunds (lunch-ums] ..... 
Traisuty bills ( 1 3- wesk 
Treasury bills (SB-wseli )..... 

GERMANY 

Special Lombortl 

Overniqht ran 

One mcrilh 

Three months - 

5ix months - 

FRANCE 

Inrervcniion raw - 

Ovcrmqht rats 

One month 

Three monihs 

Six months - 

JAPAN 

Discount rate 

Call (unconditional) 

Bill discount (three-month).. 


prised purchases of flra of 
eligible bank bills in band 1 (up 
to 14 days) at 131 per cent and 
in band 2 (15-33 days) £7m of 
local authority bills and £65m of 
eligible bank bills aJJ at 13 per 
cent In band 3 (34-63 days) it 
bought £39m of eligible bank 
bills at 12} per cent and in band 
4 (64-81 days) £lSm of Treasury 
bills, £31m of local authority 
bills and £37m of eligible h ank 
bills all at 121 per cent 

The forecast was amended at 
2 pm to a shortage of £600m 
without taking into account the 
Bank's operations in the 
morning. Further help was given 
in the afternoon of £556m, 
making a grand total 'of £7 54m. 

The Bank bought JE5m of eligible 
bank bills in band 1 at 13| per 
cent, £16m in band 2 at 13 per 
cent and £Sm in band 3 at 12} 
per cent and £20m of Treasury 
bills In band 4 at 12} per cent. 

In Frankfort the Bundesbank 
announced its intention not to 
hold a press conference after 
tomorrow's meeting of the 
central council. This Is normally 
taken by the market as an indi- 

LONDON MONEY RATES 


Firmer 

trend 


GOLD JtOSE 59} an ounce from 
Monday's close to finish at 5322 i- 
S3234 in the London bullion 
market yesterday. The firmer 
trend was sparked off primarily 
by short covering and the metal 


touched a best level of $32S-$32& 
However it eased later. 

In Paris the 12{ kilo bar was 
fixed at FFr 63,800 pec .kilo 
(5324.08 per ounce) in the after- 
noon compared with FFr 63.000 
(S320.50) in the morning and 
FFr 62.000 ($317.01) on Monday 
afternoon. 

In .Frankfurt the 12} -kilo bar - 
was fixed at DM 24.750 per ldlo 
(S324.00 per ounce), against 
DM 24.050 (S3 16.02) previously - 
and closed at $324-5325 from. 
$312-8313. 

! Mar. IS ’ 


Gold Bullion (fine ounces • 

Ctaw 832213-3231* l|17BV17Bi*)|*313 314 J.E173 Vi74U> 

i S *' 32 13 * S311i;-3l0lj t ei73U-173S«> 


Krugorrand^.. I 

W Krugerrand... 
’•i* Krugemuid...j 
bio Krugerrand i 

Maplsteaf i 

New Sovereigns.; 
King Sovereigns.! 
Victoria Sovs,__.) 
French 20s*..:..... 1 
50 pestra Mexlcoi 
lOO Cor. Austrla.l 
920 Cagles I 


Gold Coins 

>333-334 (£184l*-lB5i 

S171J*.172ie (£95-05 ij) J 
M7l,^ai 4 (JE48U-4W41 


S365*-373 4 

S3 34-335 

S79-791* 

S94-95 

39405 

S78-80 

>397-400 

SSIHls 31S 

$460-465 


(£20i* -21) . 

l£186-185ie) 
(£435,44) 
(£52-B21gi 

(£52 -52 lj) 

(£43 >*-48A«) 
(£2195,-2211*) 
(£173-1741:1 
(£2545*-2871b1 


$322 U-323 
[$1651,-1661* 

|SB4ij-33l a 

[$34I:-35'Jj 
I ¥3251^334 1* 
■$76i2-7T 
'692 93 ' 
892-83. •• 
;F76-86 ' 
,$3841* -587 1* 
•3303-306' 
,5456-461 


(£1781*- 179) 

(£911*^3)1): 

(£46*4-47 1*^ . 

1219-XMI.- 

(£178.14-179$,) 

(£4211-423*3 

■«ai-51l|) . 
(£ai-siT*>- . • 
i£4M73t) ' , 
.|£3I3»*-ai43,) 
(£158-169lgl 4 
(£25211-253 H) 


cation that key lending rates 14} per cent and longer term 
, ' rates were firmer too in response 

w fans toil money was to recent pressure on thft French 
increased to 14* per cent from franc. 


Local (Local Auth. RnanSe'^"""*II!RSeSSnrr"" ,, " , fl?l!3ri!r? — TBT 1 
Interbank ^m»rgr i n «go*'»J r « ^P»ny; Market flYeaiury %S!k* Trade 

dapowte boncu Btpotota Deposit s Deposits r Sills * BUtstt ; Will* 


16** 

16V15V 

12.74 

1284 


137 B -14l B - 

14 - 


10-131# 7-13 


: 14*8-1* 

■ 14i,-13Ts I 
< 14I B -13*4 
! 13*8-13. \ 
\ 13S* 1S*« , 
r 13b8-13U : 


Mis i3ia-ia*a lam-miiaTnaSi 


-■ : jlS^ias#] .-I3A 


Sterling | 

Mar. 16 ‘Certificate Interbank 
1982 . of deposit [ 

Overnight- ' — 2-14 ij 

3 days notice- — — 

7 days or. ' — ; — 

7 dajrc notice... - -14 14*a 

Ope montn I3ii-13;;, ; 15.4-14 

Two month3.._ 13j* 13sg . 13f-;-137 a 
Three months. 13.;-13 t> .- 13,^-135, 

Six months 13 li 13,'.. • 13,%.13<« 

Nine months.... 13(2-13^ : 13,'i I3ii 

One year 131* 13,'j ; 13^.13^ 

Two year* — • — 


,„» Lo '" 31 3 1« r, " a , n . C8 h 0“90 S seven days' ntrdcs. others seven day* fixed. Long-t9)m.(beti-Uttiibrity mohaefla 

rates nommtily three years 734, , per cent,- lour years 13* par oent; live years 13* per csm. • «‘nkbKia 
buymg r 3 te 3 | 0 r prroie paper. Buying reus lor foiK-month bank bUl. p«, cafl^oJ^Sih,^ nSJUta^A.Sff- 

Approx 1 mete aeHing rates lor one month Treesury biHi li^-lS-por cent ; two month* r-«r rmm- itirte- 

memhs 1 jiijf-12 1 ; per sent. Aporaxinroia selling rate lor one month bank bid? 13-13»- Mr Cflr)t . month* lift IfV 
cent .ed dime montha lZ‘c-12^ per «« r 00^ month trad. bfUa 1% per iSi'q^^TtSL’Sn*. 

•■o Pflf com, ™ - . . _ 

Finance Hoirees Bose Rates (published by the Fnance Houses Association) 15 Mr /-—r Vj.Lj,-..' -)aXL : 
Clearing Sank Oeposk Rates for sums at seven days’ notice 10-10V per coiu. Clearing Bank Rafiw. (or landing Iff per 
cent. Treasury Bills : Average tender rates at discount 12.4860 par cent. * ‘ 

Certificates of To* Deposits (Series 6) 13^ par cant from March 8. Deposits withdrawn yfti cadt.lT per cettr. 








ii ^r ~ -^ Mflda LJSmes JSzijzstto . Ma rch 1 8 1952 


Financial times Wednesday March 17 19S2 


• >/*V" 

CeapaniflS -aflt-flarkets 


INTERNATIONAL COMPANIES anil FINANCE 


1 p li. 

7. 


■ * L • JV 


'**RD 


RATF 5 


Greece decides on terms Amdahl 
for $400m Eurocredit profits arp 


BY DAVID TONGE AMD BETES MONTAGMON 
GREECE has opted for caution welcomed bs 


reverse 

By Paul Betts In New York 


market conditions as well as 


per cent margin throughout the maturity — of 


may also now aim for a longer some uncertainty 


life of the loan was generally 


years— and 


rather than precise polities of the 
a higher socialist government. 


Swiss issue by American Air 


BY ALAN &UEDMAN 

AMERICAN AIRLINES is 
raising at least SwFr 85m 
.ithroush an unusual eight-year 
bond issue in the Swiss market, 
backed by a . letter of credit 
from Chase . Manhattan. 

■ Led by Soditic, the issue is 
similar to - a -placement' . by 
Transamerica Financed Corpo- 
ration last year in that it offers 
local investors a potential 
foreign exchange gain as wcdi 
as interest payments in Swiss 
francs. 

This wai be achieved through 
the repayment of principal in 
U.S. dotes. The proceeds will 
be converted into dollars 
immediately and investors will 
receive -this .amount of U.S. 


the appreciation of the Swiss 
franc against the dote: during 
the life of the bond is less than 
per cent per annum. 

Under the plating plan a 


rnfrmmum of SwPr 85m (around sljare pnce - 


yesterday. A SwFr 30m convert- 
ible bond for Daicel Chemical 
was psotponed by UBS last 
postponed because of a sharp 
fall in the company’s Tokyo 


S46m) 


mannmm 


In the Eurodollar bond mar- 


SwFr 120m ($65m) may be ket prices were unchanged in 


raised. 


trading. 


The first dollar repayment appears to be reappraising its 
will begin in the fifth year, direction and has so far this 


20 per cent will be repaid in The Euro D-mark sector was 
yeans six and seven. The re- more active yesterday and 
maining 40 per cent is to be prices of seasoned and newer 
-paid at the -end of- the eighth bonds rose by i point, 
year. 

_ __ - j. In the Dutch guilder bond 

The coupon is rather high market a FI 50m seven-year 


currency bade when the bond' tiie current Swiss franc jgsQg jg being offered for Euro- 
expires, plus a bonus' to take J>ond market and the backing of Amrobank is lead- 

account of the current interest Chase Manhattan is, also un- manag er and the coupon is 10 i 
rate differential between dollars usual. Both features are re- per ce nt at par . Amro also says 
and Swiss francs. lated to the uncertain state of it has ^ the coupon on its 

the world airl i n e industry. Vl IWYm nanpr fnr tho MnrtPSPP 


account of the current interest 
rate differential between dollars 
and Swiss francs. 

For this . issue ' an annual 
differential of 7f per -cent has 
been calculated into the repay- 
ment schedule,. Investors stand 
to make an exchange profit if 


In the secondary market, 
prices of fixed-interest Swiss 
franc foreign bonds increased 
by i point in active trading 


Fl 100m paper for the Mortgage 
Bank of Denmark. Priced at 
100}, the paper bears a coupon 
of 111 Per cent rather than 11} 
per cent 


FT INTERNATIONAL BOND SERVICE 


revenues had fallen well below 
expectations. This also sent 
Honeywell shares skidding. 
Earlier Data General also 
announced it expected lower 
earnings, leading to a one-day 
i sell-off of Data General shares, 
which lost as much as 10 points 
hi a single session. 

Amdahl last year reported a 
76 per cent increase in net in- 
come, compared with the year 
before, to $26£m. Revenues 
rose hum $39 4.4m in 1980. to 
$442.8m in 198L 

The impact of the U-S. reces- 
sion on high-technology com- 
panies’ earnings has now led to 1 
a general sell-off by large insti- 
tutions of high-tech stocks. 
High-technology stocks, like 
energy stocks, have fallen vio- 
tizne of institutional selling 


The* list shows-the- 200 latest international bond issues for which an adequate secondary market an^fhodM JnSx 

extstt- Farfurflttr details of these or otter bonds see the complete list ot Eurobond pnc« which TO^t&^OTtagl 

will be published next on Tuesday March 23. Closing prices on March 16 revival in the stock 

Change on market. 


U.S. DOLLAR ' Change on 

STRAIGHTS lamed Bid Offar day wrack Yield 

Aahauaar-BuaeH UP* SB 100 103^104 +OV -0V15.49 
APS Fin. CO. 17V, 86 ... 60 10SV105V -o*. -0>i 15.39 

APS Fin. Co. UVS9--... 75 1(BS 10V, O' O 15^7 

Ann CO O/S Fin. 15>» 86 80 89 980a -OS -0*, IS £4 

Australian Ind. 15L 87 25 13BL 98A +04 +04 1535. 


OTHER STRAIGHTS 


Change on 

Issued Bid Offer day weak YMd 


APS Fin. Co. 1A 86 ... 60 

APS Fin. Co. 164 S9-... 75 

■ Arm co O/S Fin. 154 88 50 

Australian Ind. 154 87 25 

Baker 'Int. Fin. 0.0 92 225 
Bank Montreal 164 91 150 
Br. Colum Hyd. 184 88 100 
Br. Colum. Mia. 17 97 54 

Burroughs Int. 154 88... 50 

Canadair 154 87 1»» 

Can. Nat. Rail 144 91 TOO 
Carolina Power 164 89 80 

-'Caterpillar Ffn. 1ft « W 

CFMP 164 98 *» 

CISC 164 W 108 

CISC 16 87 : ' 100 

■ Citicorp O/S 164 86... ISO 

Cons.-Bnthurat 174 88 60 

. . Con. MBnoia 154-88-e..- 100. 
Dupont O/S W4 88 ... 400 
Dupont O/S Cap. 0.0 90 300 

E1B 164 91 100 

-Gen. Elefc-Cradit .00 92 400. 
Gen. Elac. Credit 0.0 93 400 
GMAC O/S Fin. 164 84 300 

• GMAC O/S Rn. IB 88 ISO 
Gull Oil Fin. 0.0 92 ... 300 
Gulf States O/S 174 §8 60 

Japan Airlines 154 88 50 

Japon Dow. Bk. 164 87 SO 
Nat. Bk. Canada W4 88 *» 

. Nat. .West 144 91 ...... 100 

New Brunswick 17 88 60 

Now Brunswick 164 SB 75 
New & Lab. Hy. 174 89 75 

Ohio Edison Fin. 174 88 75 

OKG 154 97 SO 

Ontario Hyd, 16 91 (N) 200 
Poc. Gos & El. 154 89 80 

J. C. Pcnnoy Gl. 0.0 94 360 
Quebec Hydro 174 91 ISO 
Quebec Prev. 154 89... ISO 
B.J. Rynlds. O/S 0.0 92 400 
Saskatchewan 15>* 8B... 100 
Saskatchewan 16 89 ... 125 
Stotsforerag 154 87 ... JjO 

Sweden 144 88 150 

Swed. Ex. Crad. 164 93 75 

Texas Eastern 154 88... 75 

Transcanoda 16 89 100 

Winnipeg 17 86 50 

WMC F.n. 154 88 JO 

World Bonk 184 ES ... 130 
World Bonk 164 88 ... TOO 
World Bank 1S4 88 ... 250 


60 TQS4 1054 -04 -04 15.39 
75 1034 1044 0" 0 15.27 

SO 99 984 -04 -04 IS £4 

25 1BB4 964 +04 +04 1535. 
225 24 244 O -04 14£B 

150 1084 W34 -04 -04 15.51 

100 1084 1034 +04 -04 IS JO 

64 1084 1034 -04 -04 16.32 

50 Wl 1014 0 ' 0 15.42 
150 100 1004 0 0 15.42 

100 97 974 +04 -04 15.14 

60 1014 1024 +04 -04 15.95 
TOO ■ TOS4 1034 0 -04 15.30 
TOO KX1V WZ4 +D4 -04 16.36 
100 1044 1054 +04 -04 15.67 

TOO 101% 1Q24 O 0 15.43 
ISO 1(04 104 +04 -04 ISAS 
60 1024 1024 +04 -04 16.74 

100 10241024 0 .0 15.18 

400 99 994 +04 -04 14.63 

300 344 3S4 +04 -04 14J25 

100 1044 106 +04 -04 15.70 
400. 274-274. . JD -1.13.83 

400 234 244+04-1413.13 

300 1014-102 • 0 -0415.50 

160 WD4TO04- 0 - +04 1537 
300 TO 254 -04 -14 1439 

60 1034 1044 +04 —04 16.34 
50 .1004.1004 0 -0415.04 
SO 101 1014 +04 -04 15-10 
40 1004 1014 -04 0 1631 

100 584 994 0 —04 14.91 

60 TO6>« 1074 +04 -04 15.16 

75 1024 1024 +04 -04 15.69 

75 1034 1044 +04 -04 16J» 

75 1054 105 7 , 0 —04 1536 

50 984 984+04 0 15.97 

200 1034 10*4 +04 -04 15.14 

80 1034 1034 -04 -04 14-89 
350 194 304 0 -04 10.99 

ISO 1074 108 0 -0415.58 

150 984 *4 +04 0 16.52 

400 264 264+04 0 13^7 

100 1024 1034 +04 -04 15.43 

125 1014 101 4 -04 -04 15.60 

50 964 994 +04 -04 1537 

150 954 954 +04 -04 1554 

75 1014 1014 -04 +04 16.15 

75 1004 1004 +04 +04 15.66 

100 994 1004 +04 +04 15.97 

50 1054 1054 -04 -04 15.19 

SO 964 974 +04 +04 16.21 
130 1044 10*4 +04 -04 1433 

TOO 1044 1044 “04 -04 1532 

250 994 994 -04 -04 1537 


Can. Unlit) as 17 96 CS 50 1*4 99 0 0 17.19 

CIBC 154 89 CS 75 1974 984 +14 +14 1631 

Pancanadian 164 88 CS 65 1974 984 0 O 1836 j 

Quebec 174 87 CS SO 1100 101 -24 -241737 

Quab. Urban 164 86 CS 20 1974 984 -24 -241732 

Tordom Con. 164 88 CS 2B 1994 1004 +24 +24 1832 


Tordom Cpn. 164 88 CS 26 

Tranaalta 17 89 CS 50 

U. Bk. Nwy. 34 90 EUA 18 
Algamana Bk. 104 86 R 60 
'Atnfas Group - 124 88 R -60 
Amro Bank 12 88 FI ... 75 

Amro Bank 12 86 FI ... 60 

Pierson 104 86 FI ...... 50 

Rabobank 12 TO Fl So 

OKB 1* 86 VFr 400 

Solway at C. 144 86 FFr 200 

Acona 14 85 £ 20 

Beneficial 144 90 £ 2D 

BNP 134 91 E ... 15 

CECA 134 88 £ 20 

Citicorp O/S 134 90 £... 50 

Fin. Ex. Cted. 134 TO £ 16 

Gen. Bee. Co. 124 TO £ ‘ 60 
Hiram Walker 144 TO £ 26 

Privetbanken 144 88 E... 12 

Reed (Nd) NV 164 89 £ 25 

J. Rothschild 144 90 £ T2 
Royal Trustee 14 TO £... .12 
Swad. Ex. Cr. 134 TO £ 20 

EuroRma 104 87 LuxFr... 500 
ElB 94 TO LuxFr 600 


FLOATING RATE 

NOTES Spread Bid Offer C.dte C-cpn C.yld 

Bank of Montreal 54 ST 04 994 9»4 29/4 17.06 17.15 
Bank of Tokyo 54 91 ... 04 984 99 10/6 134 1332 


New twist in 
Heiiblein battle 
with Cinema 


26 1994 1004 +24 +24 16A2 iAvuuxvm 

f* *£ 1( £4 -°04 °o X2 with Cinema 

60 100 1004+04+0410.16 TTllU V/UIVUIU 

40 104 10*4 +04 +04 1130 B V Our Fmandal Staff 

75 10*4 105 +04 +04 1033 Uur ™ anQal 

“ ’Si’S +04 +1 toS HEUBLEIN. the vodka tfistHler 
so io*4iD«4+o4+i4TO.63 and Kentucky ■ Fried Chicken 
5® 2. £. “S* group, yesterday claimed a sue- 

ttfl 92\ — Z 3 * -2VT7.fi1 . e . ^ • Za. 


£4 ^ -S +SSS cessful “£? e toft* g amejxE 
864 874 0 +04 T7.18 nerves with General Cm em a. 
904 914 -04 +041537 Heuhltin has been fiercely re- 
»* S acting to General Cinema’s pur- 

954 964 —04 0 1538 chase of 9.7 per cent of its 

BZ4 984 -V4 -04 1433 StOCk. 

964 974 -04 +04 is .18 The drinks company said that 
1004 1OT4 -04 -041635 * federal court In Hartford has 
to to -04+141432 issued a temporary restr a i ning 
97 » +04 +14 1«37 order against a Federal Trade 
SS+04 -£ii 37 Commission ruling ordering 
524 934 —04 —1 1133 Heuhk&n to postpone further 
purchases of Cinema’s stock. 
Heuhlein has bought 3.8 per 
>id offer c.dt» c.cpn c.yid cent of Cinema’s equity and 
S » TO/6 S, 06 13*42 said it wants more. It also wants 
$94 994 29/4 17.06 T7.13 to repurchase the stoke in its 
994 100 26/4 1534 1638 own equity held by Cinema. 

If* However. HeubJein also said 

% «.« its yesterday it was informed on 

» 994 9/3 54 530 Friday by the board of Cmema 

987, 994 26/2 15.44 1537 ^at the film industry company 

S St 30 /S is? SS P Ians t0 P urchase . « ieast }} 

to »4 8/6 14 M isjjs per cent of Heublein’s outstond- 
964 1004 9/5 1331 1333 ing stock and may buy as much 

994 884 29/4 17.13 17.19 js 49.9 MT cent. 

994 994 16/7 1531 1531 r wp gif General CHriPTna 
994100 30/4 1736 17.11 weeK U^erai 

384 99424/3 1731 T7.*2 purchased more than lm of us 
994 99415/7 15.19 is38 own shares and approved the 
££ i 7 ' J"" repurchase of another 2m 
984 994 2/6 13 13.11 diares. 

964 984 8/4 17 1739 . .. . ■ ■ 

TO4 99417/6 144 .1452 _ urBIAIlftl 


Bk. Nova Scotia 54 93 04 

BFCE 5«* 88 04 

BFCE 54 87 04 

Christiania Bk. 54 91— t°4 
Co-Ban Eurafm 64 91... 04 
Credit Net. 54 34 04 


Danmark. Knqdm. ot 32 04* TO4 994 26/2 15.44 1537 
Oan Norsks Cred. 54 S3 04 974 984 4/6 13.56 13.88 


a tun, i<n ™ — — ” _ — ■ - T .. 

Average price changes... On day 0 on weak -04 


DEUTSCHE MARK 
STRAIGHTS 1WJ« 

Australia 94 91 300 

Belgelecrric 11 91 ™o 

CECA 10 91 vz-... «0 

Coun. ol Europe 10 91 TOO 
C. of Europe 104 91— 255 

EEC 104 93 TOO 

ElB 104 91 

Finland, Rep. of 104 86 TOO 
Inier-Amaric.m TO 91... 1TO 
Intar-Amarican 104 91 100 

Ireland 104 TO TOO 

Mexico T1 68 2®® 

Midland Int. Fin. Oh 90 TOO 
Mr. Bk. Onmfc. 104 91 . W 
Nat. Weet: 9 » 92 
New Zealand 94 89 ... mO 

OKB 104 91 TOO 

OKB 94 86 ... ........... ISO 

Quebec Hydro 104 1 91... ISO 
Swed. Ex. Crod. 104 91 TOO 
Vonezuela 1ft 91 ...... TOO 

Work! Bank TO 91 ... .. 


Change on 

Issued Bid Offer day week Yield 
300 994 1004 +04 +04 934 

TOO 1074 1024 “04 —04 10.86 
120 TO14 1024 0 +04 9-63 
TOO 10041014+04 +04 932 
100 1014 102 +04 +04 936 

100 1014102 0 +04 9.96 

2Q0 1044TOS +04+14 9.71 

GO 994 1004 0 +04 9.78 
TOO 1014 1014 +04 +04 10.06 
100 1024 1034 0 +1 939 

100 1024 1084' +04 +1 932 

TOO 1004 1004 -04 0 10.00 
TOO 1004 1004-04 +04 TO 37 
TOO 944 954 +04 +04 936 
100 1004101 -04+041036 

TOO 10141024-04+04 938 
200 1014 1024 o +04 930 

ISO 1014 1024 +04 +04 932 
ISO 9941004 0 +04 9.76 
150 1024 1024 +04 +04 932 

100 100 1004 -04+0410.17. 

100 1004 W 0 +04 1135 

250 10341034 -O +04 932 


Genfinance 54 92. V, 994 99430/6 154 1S-54 

GZB 54 9Z #04 99 994 8/6 14M ISJJS 

Ind. Bank Japan 54 88 04 9941004 9/5 1331 1333 

Uoyds Eurafm 54 93 ... §04 994 994 29/4 17.13 17.19 

LTC8 Japan 54 89 04 994 994 16/7 1531 1531 

Midland Int. Fin. 9 91... 04 984100 30/4 1736 17.11 

Nat. Bk. Canada 54 88 04 994 984 24/3 1731 T7.42 

Nat. West. Rn. 54 91... §04 9»4 99415/7 15.1 

Nippon Credit 54 90 ... 04 994 994 10/8 16.0 

Nordic Int. Fin. 54 91... 04 984 99 8/5 154 

OftsTToro Mining ft 91 ft 984 994 2/6 13 

Pa max 6 91 04 964 964 8/4 17 

PKbanken 5 91 04 984 994 17/6 144 

Sanwe Int. Fin. 54 88... 04 1984 994 24/3 174 


994100 26/4 1634 1638 
994 1004 27/7 164 163S 
994 994 5/5 16 1638 

984 99414/4 16.69 1638 
99 994 9/3 54 530 


. Scotland Int. 54 82. 04 

Sec. Pacific 64 91 04 

Sodate Gene rale 64 91 04 
Societe Generals 54 TO 04 
Standard Chan. 54 91 04 
Sumitomo Fin. 54 88... 04 

Sweden 54 89 04 

Toronto Domin'n 54 92 04 


984 96423/3 1334 T4.T3 
984 99*, 24/5 134 . 1337 
99 99422/7 154- • 1637 

994 994 1/9 1531 1537 
984 98418/5 1331 1330 
994100 9/8 16 1634 

99 99426/8 1531 1533 

994 1004 11/8 164 1630 


Average price changes... On day 0 on week —04 


CONVERTIBLE Cnv. Cnv. . Chg. 

BONDS date price Bid Offar day Pram 

Ajinomoto 54 96 — 7/BI 833 884 884 — 24 732 

Bow Valley Inv. B 95 -- 4/81 23.12 93 9*4 0 193* 

Bridgestone Tire 54 96 3/82 <70 814 83 -04 —231 

Canon 64 95 1/81 829 854 874 “24 3.02 

Daiwa Secs. 54 96 -12/81 513.3 #62 6* -1 -6L5* 

Fujitsu fanuc 44 96 ...10/81 6770 82 834 -24 1438 

Furukawa Elec. 54 96... 7/81 300 814 924 —24 —734 

Hanson O/S Fin. 94 96 8/81 136 «8 89 0 -7.77 

Hitachi Cable 54 96 2/82 815 804 814 -44 -4.68 

Hitachi Cred. Cpn. 5 96 7/81 1773 724 744 -24 330 

Honda Motor 54 97 3/82 8*1 76 774 -24 1.70 


Hitachi Cred. Cpn. 5 96 7/81 1773 724 744 -24 330 

Honda Motor 54 97 3/82 841 76 774 -24 1.70 

(ncftcaps 8 SS 2/81 456 1614 63 +1 1934 

Kawasaki 54 96 9/81 229 614 63 -14 -3.03 

Marui 6 96 7/81 831 884 90 -24 1030 

Minolta Camara 5 96 ...10/81 909 58 594 -3 5.75 

Minorco 94 97 5/82 8.18 1*3 85 0 16.72 

Murata 54 96 7/BI 2190 664 684 -1 2032 

NKK 64 96 7/BI 188 714 7S -24-2336 

Nippon Chemi-C. 5 91 ...10/81 819 163 66 +2 —138 

Nippon Electric 5*, 97... 2/82 846 824 Bft —34 2.88 

Orient finance 54 97 ... 3/82 1567 874 884 —14 532 

Sanyo Electric 5 9B 10/81 652 66 674 -24 334 

-Sumitomo Elec. 54 87... 3/82 635 764 784 -44 039 

Sumitomo Met. 54 96. ..10/SI .306 624 644 -04 937 

Swiss Bk. Cpn. 64 90... 9/80 191 70 72 -04 1539. 

Konishlioka 6 90- DM ... 2/82 585 984 994+04 139 
Mitsubishi H. 6 89 DM. 2/82 263 904 924 -24 1334 


Average price changa a. „ On day +04 on «mek +04 


SWISS FRANC 
STRAIGHTS '**“? 

AnseU Tranaoort 74 32 50 

Asian Dov. Bank 8 90 W 

Austrolio 64 S3 ™ 

Bafaalectric 74 91 J» 

Bell Canada 74 S3 TOO 
Bet de Autopiatat 8 90 90 

Denmark 74 91 
Dome Petroleum 7>* 90 TOO 
ElB 74 92 3* 


• - Chang* on 

Issued Bid Offer day weak Yield 
60 10141014-04-0*1 738 

90 10241024 0 +04 734 

100 1034 1034 -04 -04 633 

90 100 1004 +04 -04 7.47 

100 1044105 +0V-04 6.63- 

50 694100 +04 -04 8.01 

TOO 884 99 +04 -04 731 
100 1024 103 +04 +54 6.78 

100 1004 TOt - 0 -04 7.12 

100 ' 1004 1004 -04 -04 630 
44 1004W04 « —04 7.96 
TOO 1024103 0 +14 637 

60 1054 1054 +04 +04 7.64 
TOO 1044 1044 +04 +04 6.60 
1Q0 TO74 1074 +04 +04 6.92 
K» 10141014 0 -1 6AO 

too 1004 1004 + 0% -04 ftw 


Ftar de France 7 92 ... TOO TO04 1004. -04 -04 R30 
IneL a 9a”!!..:.*- - « 10041004 « -04 7.se 

Gahtsr 7 .. .... TOO 1024103 0 +14 637 

■ f/s Bum 84 ft .. 60 1054 1054 +04 +04 7.64 

;s aa»$s 

QCIO Citv cf B SI . 100 t1064107 +14+24 639 

8 Sb 2 si isr*- w s-ssAia $£ 

SSrtr&SSla s 2 

ISf 0« fin B 91 ... 50 1* 1054 +04+W* 


884 80 -24 1030 — 

58 S»4 —3 9.75 HYS7B1 

183 85 O 16.72 

664 684-1 2032 

“3 w +2 —1-48 Met nrnl 

824 834 —34 2.88 n« »i 

874 884 —14 532 


N. AMERICAN 
QUARTERLIES 


1961-82 196031 

TTifrd quarter _ * 

Revenue 3 ?^? m 3 5 4 fi? m 

Nat profit* — S '?J? 

Nat par share - — 0.*9 . 0.+1 

Nine months _ __ . 

Revenue 

Net profits - - 

Net- per share — — 1.*7 

GULF 6 WESTERN INDUSTRIES 

T9S1-82 136031 

Second qua rear S 

Revenue 

Net profits ............... 603m 70.5m 

Net per share - 0.79 0.91 \ 

- Six months 

Revenue — — ££, hn SS? >n , 

Net profits ... 13 V-5i 

Net par share T-- 1 - 


Fourth quarter 

Revenue — 

Net profits — 

Net pet share 

Year 


TO81-82 1900-SI 
S $ 

. 141 Am 158,3m 

6.33m 10.0m 


674 -24 334 j Rmranue — 583.6m 639.7m 


764 784 —44 039 
624 84*. -04 937 
70 72 -04 1539. 

984 994+04 13 
904 924-24 1334 


Oat. Donoukraft 7 92 — 1 ™ 
Saint- Euan ne 84 SI 

Swed. Ex. Cred. 74 91 75 

TNT O/S Rn. 8 91 ... 50 

Trantcenado Pipe. 7 9t TO 

UnMvsr NV 74 93. ... TOO 

■'World Bonk 7 90 100 

World Bank 8 91 TOO 


ZD 106 1064+04+34 736 
75 984 984 +04 +14 7-« 

50 105 1054+04+04 734 
WO 10241024 O +04 8.72 
108 '106 1064 0 —04 6.72 
100 1004 n»4 -04 -04 633 
■MO 105 1054 0 -04 733 


Avetafee price »ange*... On day +04 on weak +04 

Change on 

YEN STRAIGHTS IssueH Bid Offer day week Yield 

Asian Dev. 8k. S4 91... 15 9941004 0 “04 8-21 

Finland. Rco. of 84 67 15 S941ttP, O -04 837 

Int.-Amer. Dev. '^91 15 10141024 0 -1 831 

Japan Airlines 74 87 — 3 87% 99% o —24 831 

New Zealand 84 87 ...... .15 894 R»4 O -0% 837 

Average prfco chanflSS... On diyOMenefc -04 


* No information available— previous day's price. Revenue 

t Only one market maker supplied a price. Nr profits' 

Straight Bonds: The yield ti the yield to redemption of the Nat per ahare — 
mid-price: the amount issued is in millions ot currency Year 
units except for Yen bonds where It is in - billions. Rovenua — — 

Change on weak^ Change over pries a week eadier. Net profits ......... 

Roaring Rate No tes : Denominated lit Softere unless other- Net par snare 
wise indicated. Coupon shown is minimum. C.dxe«Dota p^y | DRUG 

next coupon becomes eff active. Spread— Margin above — — 

six-month, offftrt? rate « three- month: § above, mean _ . 

rata) for U.S. dollar*. C-cpn-The current coupon. „ Fourth quamr 

c C-yid— The ourrerw yield. y** 1 * 18 * 

Convertible Bands: Denominated in doilere unless other- J* 81 prontt - 

w>sa indlcetad. dig. day— Change on day. Cnv. date— P* r 4Bara 

Firar date lor conversion into share#. Cnv. price— T ** r 

Nominal amount 'of bond per share expresaed In ” 0VBT1U ® 

currenev of share at conversion rate fixed at issue. J** 1 prol*» 

Pre« -PwwBtege premium of ihe current efiaefiva price - Net per snare 
of acquiring ebares via the bond over the most recent- simpsOKS-GEARS 
pnce of the a ha rex. T j ' 


Nisi profits — 

N et per share - 5.61 7.20 

LEVTTZ FURNITURE 

1981-82 1360-81 

Fourth quarter * 8 

Revenue .. — 125 -2m WO -3m 

Net profits 2.64m 4.84m 

Net per share 0.53 ■ 1.14 . 

Raven uo 4883m 5003m j 

Nat profits wm——- 837m 13.18m 
Net par share — 2.10 3.10 

PAY LESS DRUG STORES "Sw ” 
1981-82 196031 

Fourth quarter S S 

Bavanua 226.6m 2203m 

Nat profits — — BJ2Sm 7.04m 

Nat per ehare — 0.92 0.78 

Revenue - - 7583m 7603m 

Ne; profits 16.65m 1432m 

Net per shera — 1TO. 1.61 


C The Financial Timas Ltd.. 1982. Reproduction in wbola. 
or in part in any form n« permitted without written" 
consanr. Data supplied by DATASTBEAU International. 


Revenue 

Nat profit* ... — 
Nat per sharp ....... 


1367-82 186081 
CS CS 
. 3.136a iTObn 
. 313m 50.3m 
037 0.58 


Shell Canada threatens to Adioco ’ s 

reserves up 

abandon Alsands project but setback 

BY ROBERT. GlBBaiS IN MONTREAL for Texaco 


• v I 1 . opiea for- caution welcomed by international amount than' originally planned. By Caul Betts In New York 

lie sggfjrfflfe 3 . is ^ ^ 

“forthcoming MOOm medium way," sold one. “The ^rfeet Is „/ manufacturer of large matt- 

. term Eurocredit verv trickv *» Portugal* both of which are frame computers, is the latest 

The decision follows several L ^ ^ « planning large credits shortly U.S. high-technology company 

weeks of deHberation on the banldng and both of .whidi have been to wain that profits will be sub- 


w or oanKing and both of whicii nave been to wain that profits will be sub- 
loan project during which the Y ron }? x “ > 0 H^ was the hoping to retain the prestige of stontially lower this year be- 

coun try’s central bank is under- ****?? “Mttun-term loans for a transaction embodying a i per cause of tile American econo- 
stood to liave received a number * ou - borrowers with cent maigin regardless of its mic slump, 

of offers from individual banks mcludtag an element impact in the marketplace. The company said it expects 

■prepared to lead the credit on h A ve Greece last year raised a to report sharply lower net 

the basis of a split fr* per cent dSoit? coSStition ^rTS^S S400m, 10 -year credit on a spUt Profits for the first three + quar- 
margm. r Q “P 7 compeunon to arrange , , margin over ters 04 tins year, and that any 

Now that it has decided to &uch deals at lead manager level. jJndon interbank rate improvement in the fourth 

reject these terms, about 10 Greece is understood to feel (Libor). The increase in the Quarter would depend largely 
banks have been invited to that it was worth sacrificing nrnrpfri since then is attributed - 


_ that it was worth sacrificing mnrpfri since then is attributed 0n tile number of shipments of 

Athens this Friday for the the very low . margin to ensure to the general hardening of the company’s new 5860 corn- 

award of a formal mandate. success for the transaction, it market conditions as well as P utei > 

The decision to go for a i may also now aim for a longer some uncertainty about the This computer was expected 

maturity— of 10 rather than precise polities of the new h> make its debut in the second 

eight years — and a higher socialist government quarter, but the company says 

— ^ ..... initial shipments are not 

— : scheduled to begin before 

e _ . August. The delay, Amdahl 

U «7 A VMAVB/VAM A wW said, was largely due to design 

DY Am erican Air changes made veiy late in the 

*****'*- M.'+s+mMA m ■ ■ computer model prolamine. 

The company also, said late 
deliveries of parts from outside 
suppliers had delayed produc- 
tive appreciation of the Swiss yesterday. A SwFr 30m convert- tion- 

fianc against the dollar during ible bond for Daicel Chemical report tha tAmdanl er- 

the life of the bond is less than was psotponed by UBS last Pectod ea r nings to decline in 
75 per cent per annum. postponed because of a sharp 016 first three quarters ot uus 

„ _ ■ . fail in the comnarrv’s Tokvn year sent Amdahl shares tumb- 

Upder the plaqmg Tfian a ^are priM ^ ling on the American Stock 

rrrtmm u m of SwFr 85m (around 0 y Exchange yesterday. Amdahl 

546m) an da maximum of In the Eurodollar bond mar- shares declined by 3$ points 
SwFr 120m ($65m) may be ket prices were unchanged in to just over $19 in morning 
raised. light trading. This • sector trading. 

The first dollar repayment appears to be reappraising its Last week Honeywell said it 
will begin in the fifth year, direction and has so far this expected lower earnings in the 
when 20 per cent of the bond’s weefc done little more than to first quarter because computer 
value is to be repaid; a further mart: time. revenues had fallen well below 

20 per cent will be repaid in The Euro D-mark sector was expectations. This also sent , 


SHELL CANADA’S leadership' 
of the C$13bn (US$lL8bn) 
Alsands project in Alberta will 
probably be decided by the end 
of this month. 

Mr William Daniel, president 
of Shell Canada, said his com- 
pany will not remain - hi the 
Alsands consortium if it is 
majority controlled by govern- 
meats and their agencies. 

Shell has. a. 25 per cent 
interest in Alsands, Petro- 
Cinada, the national oft com- 
pany 17 per cent, and Gulf 
Canada about 8 per cent. The 
other . m e m b e r s — • Dome 
Petroleum, Hudsons Bay Oil 
1 and Gas, Chevron Canada and 
Amoco Canada representing 
together 'a 50 per rent interest 
— have pulled . out because of 
u ncert a inties over the rate of 

return and future oil prices. 

Mr Marc Lalonde, Federal' 
Energy Minister, and Mr Merv 
Leitch, Alberta’s Energy 
Minister, ere having further 
talks this week to try to solve 
the problems of the Alsands 
project, which would produce 
almost 140,000 barrels daily of 


synthetic oil from a tar sands 
extraction plant 

Mr Lalonde said in Montreal 
that- bis government is still 
committed to the Alsands pro- 
ject despite declining world oil 
prices, and regards it with 
equal priority to the Beaufort 
Sea and East Coast offshore oil 
development. 

However, he said for the 5rst 
time that production from 
Alsands -is not now envisaged 
until 1989. and this implies that 
the capital cost including infla- 
tion to 1989 will be much more 
than CSISbn. 

This in turn constitutes the 
problem of investment • return. 

Mr Daniel said in Toronto 
that Alsands started as a private 
sector project and that is the 
way Shell wants it to continue. 
Petro -Canada inherited a 17 per 
cent interest in Alsands when it 
bought Petro fina Canada for 
more than C$lbn early last 
year. 

“ If there is no private sector 
involvement besides Shell, we 
will have to look at where we 
stand,” said Mr Daniel. 


A number of private sector 
companies have been rtanoured 
to be considering participation 
in Alsands, especially those with 

sufficient earnings from other 
sources to benefit from Alsands 
tax write-offs. Among these < 3 - 
p anies. Nova Corporation, 
Hiram Walker, Pancanadian 
(Canadian Pacific), Texaco 
Canada, and Norcen Energy 
have been mentioned, . Gulf 
Canada has already indicated 
it may pull out. Gulf has major 
developments in progress in the 
Beaufort Sea and off the East 
CoasL 

Mr Daniels said Alsands has 
approached about six companies 
to see whether they would join 
the project The consortium also 
welcomed back -any company 
which has left 

Shell hopes to hear from 
these companies by- the end of 
this month. 

Mr Lalonde indicated last 
night that the share of Petro- 
Canada may be increased- and 
that the Alberta government 
may - invest directly in the pro- 
ject 


Record earnings for Jewel 


BY OUR FMANOAL STAFF 

JEWEL COMPANIES, the 
. Chicago-based supermarket ahd 
drug store operator, ended the 
year to January last with a sub- 
stantial gain in profits, although 
comparisons ere distorted by 
disposals and by accounting 
changes at Auxrera, the partly- 
owned Mexican offshooti 
Full year earnings show a 
gain of 84 per cent to $10L7m 
or $8.03 a share, a record level. 
But this year’s net includes a 
gain of $27.3m on sale of stock 
in Aurrera and of 30 cents from 
the adoption, at Aurrera of 
FA5B 52 accounting procedures. 
The previous year took in a loss 


of 71 cents from discontinued 
operations. 

Sales* for the year gained- 20 
per cent to $5.11bn, .but .this 
includes a slower final quarter 
in which sales growth was only 
7.3 per cent . . 

At the beginning of the 1981- 
1982 fiscal year, Jewel decided 
to close down its home shopping 
service which had turned in a 
* loss of $L3m in the previous 1 2 
months! It also reduced its 
stake in Aurrera from 41.7 per 
. cent to 36.1 per cent, realising 
515.9m. 

At the same time. Jewel dis- 
closed plans to* expand its super- 


market and drug store opera- 
tions. winch have traditionally 
produced the bulk of profits, 
with 61 per cent and 34 per cent 
respectively in 1980-8L 

Capital expenditure of around 
SSaOm-have been estimated for 
the three years to fiscal 1983-84. 
On the back of this expansion. 
Wall Street has been predict- 
ing increased earnings from 
Jewel in the current year. 

Supermarket -operations con- 
sist of the Buttery, Eisner, 
Jewel and Star chains, covering 
14 states. Drug .stores total 
Dearly 150, and extend through- 
out 25 states.- • 


Heavy loss at Groupe 
Bruxelles Lambert 


BY OUR FINANCIAL STAFF 

GROUPE Bruxelles Lambert 
the Belgian banking and indus- 
trial group which earlier this 
year took on board a powerful 
consortium of new shareholders, 
reports heavy losses for last 
year. 

The company also announces 
plans for a financial reorganisa- 
tion involving the merger with 
a major subsidiary, and says 
that its financial year is to be 
changed from September to 
March. 


Net losses for the year ended 
September - -1981 totalled 
BFr 468.4m (59.9m) which, the 
group says, will be covered 
entirely by reserves. 

• The group plans to • merge 
with its wholly -owned subsidiary 
Compagnie Bruxelles Lambert 
(CBL); ; 

Earlier this year a consor- 
tium tok a one-third stake In 
Grouipe Bruxelles Lambert by 
subscribing BFr 2.6bn in new 
shares: 


Bendix pays 
$98.4m for 
RCA stake 

By Our Financial Staff 

BENDIX the large U.S. manu- 
facturer which supplies products 
for the motor, aerospace and 
industrial markets, paid $98 ,4m 
;for the 7.2 ■ per . cent- it has 
bought in RCA. a leader in the 
UJS. colour television, broad- 
casting,- vehicle renting and 
defence electronics industries. 

The directors of Bendix have 
told RCA that the .shares were 
acquired for investment pur- 
poses and that no further shares 
will be bought for 30 days. 


By Our Financial Staff 

STANDARD OIL of Indiana has 
reported a marginal increase 
in oil and gas reserves while 
Texaco has reported a decline 
despite a sharp increase in its 
exploration expenditures. 

Standard Oil, which retails 
under the Amoco brand name, 
said its total crude oil and 
natural gas liquids reserves 
rose to 2.69bn barrels at the 
end of last year from 2.65bn 
a year earlier. The main 
gain was overseas — from 756m 
barrels to 795m— while U.S. 
reserves were barely ahead at 
1.67bn barrels and the 
Canadian ones fell to 209m 
barrels from 230m. 

The company's total gas re- 
serves rose to 14.93 trillion 
cu ft from 13.68 trillion, with 
the main gains coming in the 
U.S. and overseas while 
Canada edged ahead. 

It said that its capital and 
exploration budget in 1982 
will be $5.2bn, about the same 
as 1981, but the U.S. share 
will increase to $3.6bn from 
$2.Sbn. Total capital spend- 
ing in 1980 was $3J26hn. 

“The company’s prospects are 
limited not by a lack of 
investment possibilities but 
a tax-induced shortage of 
capitai.” it said. 

Taxes totalled $16.75 a share in 
3981 against $6.56 a year 
earlier while net earnings 
were $6.56 against $6.54. 

Texaco said its net proved re- 
serves of crude oil and nat- 
ural gas liquids fell to 2.12 bn 
barrels at the end of 1981 
from 2.33bn a year earlier. 

Its worldwide gas reserves 
slipped to 10.17 trillion cubic 
feet from 10.84 trillion a year 
earlier. 

Texaco's capital spending rose 
65 per cent to $2.2bn in 1980 
and then increased by a fur- 
ther 47 per cent last year. 

For a number of years Texaco's 
profitability lagged that of 
the industry leaders, mainly 
because it lacked low-cost sup- 
plies of crude oil, although 
it does have access to Saudi 
Arabian crude. The heavy 
capital spending is designed 
to improve supplies. 

Texaco reported 1981 net earn- 
ings of $2.3bn, or $8.75, on 
sales of $59.4bn, compared 
with S2-24bn. or $8.31 on 
sales of $52.5bn. 


Citicorp lifts payont 

Citicorp, holding company for 
the second largest bank in the 
U.S„ has raised its quarterly 
dividend to 43 cents a share 
from 39 cents, payable May 3 
to shareholders of record on 
March 9, writes our Financial 
Staff. 


This announcement appears as a matter of record only 



YACIMIENTOS PETROLIFEROS FISCALES, 
SOCIEDADDELESTADO 


£ 50 , 000,000 

Acceptance Credit Facility 


Arranged and Provided by 

Banco de la Nation Argentina 
Canadian Imperial Bank Group 
Commerzbank A.G. (London Branch) 
Credit Suisse 
GrindlaysBankpAc. 

Samuel Montagu & Co. Limited 
National Westminster Bank PLC 
The Sanwa Bank, Limited 
Swiss Bank Corporation 

Agent 

Grmdlay Brandts Limited 


March, 1982 


?S ll f3'i365r 9 S.5 S B iS 3 l 








30 seconds 
isalong 
time in a - 


dealing room 


The new Reuter Money 
Dealing Service gives you, on 
your Reuter screen, dealer-lo- 
dealer contact within four 
seconds. 

But if you use telephone or 
telex, it may take you 30 
seconds to get through. On an 
active day Cable may then have 
moved 1 8 points; and on a 
£1 million deal that could have 
cost $1800. 

The Reuter Money Dealing 
Service, launched on 23 
February 1 981 , already links 
more than 200 banks In 26 
business centres: 

London - New York -Boston 

- Chicago - Detroit - Toronto - 
Amsterdam - Rotterdam - 
Brussels - Luxembourg - Paris 

- Zurich - Geneva - Lugano - 
Lausanne - Frankfurt - 
Dusseldorf - Stuttgart - 
Munich - Hamburg - Bochum - 
Vienna - Helsinki - Oslo - 
Dublin - Milan. 

Other countries will be on 
line shortly, including centres in 
the Middle East and Far East. 



•••♦ • *#••••*••• •••• * 

• •• • •• 
***• * • * •••• •••• • •• 
• • • • ••• • « # 
• • «••• . •. •••• • • 


World market* a* they move 


To: The Market Manager, Dealing 
Reuters Ltd 
85 Rest Street 
London EC4P4AJ 


Position 


Please send me further information on the 


Reuter Money Dealing Service 


Address 


□ Pfease arrange for me to attend a 
demonstration 


This azmouncem eat appears as a matter of record anfy: 


. *150,000,000 

General Poods Corporation 


1436% Notes due March % 1989 


Lehman Br othersK uhiiLoeb 

Goldman, Sadis & Co. 


Salomon Brothers Inc 


The Boston Cotpotatjon Merrill lyncl 

Mar 

Bache Hal ^yStu arfc Shields Beat; Steams Ss Co. 

D 21 on, Read 8 b Co. Inc. .jSs Jenrstte 

B.R Hutton 85 Company Inc. Kaddei; Peabod y SsCa 

It, R Rothschild, Unterbeig, Ibwhin 


Mei^I^mch White Weld Capital Markets Groum 


Blyth Eastman Paine Webber 

ZocapvafaKl 


Drexel B urnham Lambert 
LazardFieres & Co. 


Sheatson/ Amflnngn T^c pmag Tnrv 


Smith Barney, Hams' Upham Ss Co. 

Inm i pun ttBl 


Waifouig Paribas Bedter 

Att H tdar 


Wertham 85 Ccx, lac. 


Dean Witter Reynolds Inc. 


“P fipra f VifWfripmfg'Tft T falrflna 


Morgan Grenfell & Co, 


Banque Nationale de Paris CreditoXtaEano 

Svenska, Handelsbanken 


Williams & Glyn’s Bank Limited 


2Co the Holders of 


U.SL$ 75 , 000,000 Floating Rate 
Capital Notes 1991 


SANKYO ELECTRIC CO* LTD. 

U.& $ 25 ^KHX^) 0 D 8*4% Convertible Bonds Due 1995 


Unconditionally and irrevocably guaranteed 
as to payment of principal and interest by 


MoaacB eg mmafl Mmmran gmr ob grcmgBft 

AND 

ADJCSQffSNT OB' WNV.E2&IOH TXU3B 




For the six months from 16th March 1982 
to 16th September 1982 the Notes will carry an 
inrerest rate of 15 3 /ifi% per annum. 

The interest payable on the relevant interest 
payment date, 16th September 1982 
aaainst Coupon No. 6 will he U.S.$78.26 per 
U.&$1,OOQ note. 


BaohoslhutCon^anglxndba 


a free distribution: ofahares of its common. stock to shareholders 
of record as of Hard* 31, 19S2, Japa a time, at the late of 0.05 
share for each share held, the Conversion Price of the above- 
captioned Bonds will be adjusted pursuant to Condition 5 of the 
Terms and Conditions of the Bonds under Trust Deed dated "Feb- 
ruary 14, 1980 from Yen 687.00 to Yen 635,20 per- share, effective 
as from 1st April, 1982, Japan time. 

SANKYO ELECTRIC CO* LTD. 

20 Eotolnddclw, B«saki City 

Gmrma Prefecture, Japan 

March 17, 1982 


Financial Times Wednesday March ‘17 1982 ^ 


Companies 
and Markets 


INTL? COMPANIES & FINANCE 



U.S. group 
pulls out 
of Basque 
glass deal 


Olivetti lifts dividend after 


sharp upturn in earnings 


By Robert Graham in Madrid 


BY JAMES BUXTON IN ROME 


GUARDIAN INDUSTRIES, 
the U.S. glass producer, has 
pulled out of a Pta SL2bn 
(888m) float glass Investment 
in a Basque-based concern, 
Vidrieras de Uodio. 


Vidrieras de Uodio last 
August reached an under- 
standing with Guardian 
whereby the UjS. group would 
finance a Pta 9.2bn float glass 
plant in return for a con- 
trolling shareholding in the 
Spanish company. The move 
was to have been the biggest 
single recent foreign invest- 
ment in the Basque country, 
seemingly helping to endorse 
the region's industrial future. 

Although political uncer- 
tainties in the Basque country 
have been cited, as the reason 
for Guardian's decision to 
withdraw, this is ruled oat by 
the . Spanish company. 
Vidrieras de Uodio said that 
the question of Basque 
politics had never entered 
into the negotiations. "We 
have not been told why 
Guardian has decided not to 
go ahead. 1 * 

The most likely reason. is 
thought to be a revised view 
of the costs of the investment 
measured against market pro- 
jections and existing planned 
Guardian capacity in Europe. 

Vidrieras de Uodio Is 
determined to acquire a float 
process and would prefer an 
international partner but has 
yet made no other contacts. 

This is the third time tn 
two years that a multinational 
has decided, to pull out or 
scale down major investment 
commitments in Spain. The 
previous instance s have 
involved Fiat with the car 
producer. Seat, and Inter- 
national Harvester with the 
track producer, Enasa. 


j xng C Olivetti, the parent 
I company of the Olivetti data 
i processing and office equipment 
group, yesterday announced a 
75 per cent increase in profits 
for 1981, to L87.8bn (868m) 
from L50.1bn in 1980. 


The result, which further con- 
firms the growing strength of 
Olivetti, the largest company in 
its field in Europe, and the 
sixth biggest in the world, is 
based on a 23.5 per cent in- 
crease in turnover to Ll,362bn. 


The profit figure was struck 


after allowing L6B.2ta for 
depreciation. U08bn for 
research and L27bn for tax . 

Gross income before charges 
was L2S0bn, compared wilh 
L205.Sbn in 198a This was 
partly the result of a fall in net 
financial charges from LTT.flm 
in 1980 to L45.3bn In 1981. 
Debt fell from LSlSTbn at the 
end of 19S0 to L60.8&H at the 
end of 1981. 

The company is to ask share- 
holders at the annual meeting 
next month to approve the issue 
of a I4.20bn non-convertible 


bond. A dividend of Lite per 


share is to he paid Against M 
In 1979 the company pahftts 
first dividend since 1974. 


Turnover of . the . entire 
Olivetti group in 1881 Was. Up 
32.4 per cent at WffTbu. The 
consolidated results will be 
presented in Jon®, 


Olivetti says that profit? were 
made despite "the decline in 
the international economic 
situation, 11 which it Jays was 
particularly marked in the hu 
four months of 1981. 


Fivefold profits rise at Statoil 


BY FAY GJESTER fN STAVANGER 


STATOIL INCREASED net 
profits fivefold last year to 
NKr 1.02bn (8170m). and will 
for the first time pay its owner, 

. the state, a dividend — of 
NKr 36Sm- 

However, because the com- 
pany has now repaid the deficits 
it accumulated during its de- 
velopment stage, tax for 1982 
is likely to be around NKr 2bn, 
against NKr 352m in 1981. As a 
result, after tax profits for 1982 
are expected to be somewhat 
below last year's figure. 

Group turnover rose to 
NKr 13.5bn from NKr 8.6bn in 
1981, including Statoid’s market- 
ing and refining subsidiaries, 


Norsk Olje (Norol) and Rafinor. 
Capital spending was just over 
NKr 3bn. with investments in 
the Statfjord field accounting 
for about 70 per cent of the 
total. 

Looking ahead, Statoil expects 
to continue investing heavily 
over the next few years. New 
projects such as the "golden 
block** oH and gas development, 
the Statpipe gas gathering 
system and the Heimdal gas 
field will push investment 
spending up to between 
NKr 7bn and NKr lObn annually. 


In Stavanger yesterday Mr 
Arve Johns en, the managing 
director, said the most impor- 


tant exploration event : for 
Statoil in 19S1 had been. 'its 
discovery of a sizeable gas Add 
on a concession off the north 
Norwegian coast. 

Finds so far indicated reserves 
about half the size of the AnjJb- 
Norwegian Frigg field. Explora- 
tion in the area would continue 
this summer and it was hoped 
that enough additional : as 
would be found to justify 
eventual- development, although 
this lay “well in the future.” 

Altogether It had been a good 
year for the company’s explora- 
tion activities. Of 14 wefls 
drived, 11 had hit oil or gaa-*- 
an 80 per cent success rate. 


Strong growth at Banque 
Europeene de Credit 


Wienerwald 


Danish security 
company 
shows advance 


BY GILES MERRITT IN BRUSSELS 


assurance on 
debt service 


By Hilary Barnes In Copenhagen 


ISS, tiie Danish cleaning and 
security systems group, 
reports sharply higher profits 
for 1981 and plans a one-for- 
six scrip issue. 

An “ extremely satisfac- 
tory year ” has taken net 
profits up by 67 per cent from 
DKr 27.7m to DKr 46.1m 
($5.7m>. Pre-tax earnings in- 
creased from DKr 53.7m to 
DKr 72.8m. Sales rose by 7 
per cent to DKr 3.72bm or 
by 18 per cent on a compar- 
able basis, says the prelimin- 
ary report 

The bonus issue will increase 
capital from DKr 84m to DKr 
180m. Earnings per share 
increased from DKr 3294 to 
DKr 5493— ISS* best perform- 
ance since 1977. 

The company proposes to 
pay shareholders a main- 
tained dividend of 10 per 
cent 

Last August— when unveil- 
ing a rise from DKr 179m to 
DKr 23.5m in pre-tax profits 
for the half-year— ISS told 
shareholders to expect a 
sharp increase In profits for I 
1981 as a whole. 


BANQUE Europeene de Credit 
reports a sharp increase in net 
profits, short-term lending and 
total balance sheet for 1981. 

The Brussels-based Eurocur- 
rency specialist bank, which is 
owned directly ami indirectly 
by the member of the European 
Banks International consortium 
(EBIC), disclosed that net earn- 
ings last year were 88 per cent 
up on 1980 at BFr 840m 
(819m). 

The total balance sheet grew 
by 45 per cent during the year, 
rising from BFr 1079bn to 
BFr 155.7bn, while short- 
term lending increased by 105 
per cent to BF 359bn. 

The bank pointed out, how- 
ever, that the expansion of its 
balance sheet was mainly the 


result of currency fluctuations 
during a year in which the 
value of the dollar had risen by 
30.7 per cent against the 
Belgian franc. 

The bank granted a total of 
79 loans worth the equivalent 
of BFr 27.8bn, and was involved 
in the management of 24 syndi- 
cated loans worth 84-2bn, and 
was lead manager to half of 
those. 

An unchanged 32 per cent 
dividend is proposed. 

The membership of EBIC is: 
Amsterdam - Rotterdam Bank, 
Banca Commerclale I tali ana, 
Creditanstalt - Bankverein, 
Deutsche Bank, Midland Bank, 
Belgium’s Societe Generate de 
Banque and Societe General e of 
France. 


fly John Wicks In Los JfcnffW ; 


Philips Australia resumes payment 


BY GRAEME JOHNSON tN SYDNEY 


PHILIPS HOLDINGS has 
resumed dividend payments 
after a rapid recovery in profit 
from A$1.9m to A$lL9m 
(U.S912.6m). 

The Dutch-controlled tele- 
vision and household electrical 
goods group has declared a 
5 per cent a share pay out — the 
first dividend it has paid since 
1977 when it got into financial 
difficulties. 

Turnover last year rose .by 


7 per cent from A$416m to 
A$446m. Profit growth came 
mainly from rationalisation 

Philips repaid A$17.1m of 
loans during the year, reducing 
interest payments from A$10.8m : 
to A$8.9m. Earnings per share 
rose from 3.3 cents to 20.8 cents. 

Tax for the year was 
A|1 94,000, compared with 
AJ146.000 previously. The com- 
pany is utilising tax losses 
chalked up since 1977. 


WIENERWALD, the Swiss- 
based restaurant and - hotel' 
group, is fuly able to meet con- 
tractual commitments to. service 
and repay debt, Mr .Friedrich 
Jahn, Its founder. said here after 
two German banks called in a 
total erf DM 3m of- the company's 
DM 260m (8110m) total 

borrowings 

A large-scale investment pro- 
gramme costing the equivalent 
of DM 292m was completed and 
all . debt -would be repaid in the 
next four years, he added. 

Mr Jahn, who flew to Europe 
yesterday, said that “ rumours 
Were chasing .rumours” and 
admitted that Wemerwald 
could find itself itt difficulties 
if more banks were to call, for 
repayment. 

The debt was largely to 
finance a DM 135m investment 
programme in the US, and r 
DM 100m expansion in West 
Germany. Spending has beer 
centred on the acquisition and 
reorganisation of the Interna- 
tional House of Pancakes and 
Lums Restaurant chains in the 
U.S. and the setting up of a 
German travel agency, Jahn- 
Reisen. 

Business In the U.S.' is 
developing according to the 
group's five-year plan, with 
profits expected both for this 
year and 1983. 


This advertisement complies with iteTeqzurementsofthe Cawed ofTkeStock Exchange. 
It does not constitute an offer of, or invitation to subscribe for or purchase, any securities. 



US. $75,000,000 

WeBsFargoIntemationalFmancingCoiporatwnN.V. 


Gncarporatedin the Netherlands Antilles) . 

13% GUARANTEED NOTES DUE 1987 


Wells Fargo & Company 


Qncurporuted in theState of California) 


MORGAN STANLEY INTERNATIONAL 


ARABBANKWGCORPORATION(ABQ 


BANQUE NATIONALS DEPARIS ' 


COMMERZBANKAETIENGESEXl£CHAFT 


CREDIT SUISSE FIRST BOSTON 
■■ ■ - Limited ■ 


DEUTSCHE BANK AETIENGESELLSCBAFT 


MORGAN GEENFELL&CO. 

JSmifpd 


MORGAN GUARANTTLTD 


SAWmNBROTBEBSINmtNmimL 


SOCI&Tti G&N&RAIE DE BANQUE SA. 


SWISS BANK CQKPORMim INTERNATIONAL 

* Jutotib sA 


UMONBANKOF SWITZERLAND (SECURITIES) 

FJ pt l ft d 


WEHJS FARGO ~ 


The Notes, in denommadem afUJ3J$lfiOO and UJSJjllOjOOO each, with an issue price of 100 percent, h/mah*** 

admitted to ^Of^eudl^t by the Cotatal of ^teSiotA Exchange, suhlea only to the issue of^teniamirv Note. ■ 

Interest is payable annually in arrears on March 15, commencing onMarch 15, 1383. - - 


“'hi' oifTi i ■/ 




during normal business hours on any weekday (Saturdays excepted) up toand including Marchdl. 1382 frarnthe 
brokers to the issue: 


Ctaemme&Qh, 


March 17. 2382 


E2R7AN 


. -x 









- Fin ancialjnmes .Thursday. March. 18 1982 






\ Finandal'-TiHes .Wednesday "March' 17 19S2 ‘ 

INTERNATIONAL 


27 


Cumjiaflie*^ 
aiffi “Markets 


COMPANIES and FINANCE 


Tokyo SE 
closer to 



overseas 

members 

ByRichard C. Hanson in Tokyo 

THE BOARD of governors of 
tite Tokyo Stock Exchange 
voted yesterday to open the 
membership to foreign securf- 
ft£S houses; The measures must 
now 1 he approved by an extra- 
ordinary meeting- of the ex- 
change's 83 members, : set for 
March 31,. and by the- Finance 
Ministry. .. . : 

The SE board agreed to delete 
that section of ..the exchange's 
constitution which forbids 
foreign members. But the move, 
even after approval by all par- 
ties concerned, will' not neces- 
sarily lead to any immediate ap- 
plications from foreign brokers. 

Merrill Lynch, the largest 
foreign broker licensed to do 
business in Japan, for example, 
is considering whether to seek 
membership in' Tokyo or on one 
of the country's . regional ex- 
changes. 

While certain long-term ad- 
vantages may be gained from 
joining the Tokyo ^market, there 
are still a number of obstacles 
to be faced. The first is cost. "It 
is generally estimated that be-, 
cbnring a member in Tokyo 
would cost Ylbn ($4.3m), far 
more than a seat on the New 
York Stock Exchange. 


Kubota setback 

Kubota,' the Japanese maker of 
agricultural equipment, and cast 
iron pipes, has— reported, con- 
solidated net income for the 
nine months ended January 13 
of S42.5m,-‘ hr- 84 cbnts . per 
American' Depository Share, 
against 850.13m, or -76 qents, a 
year earlier. Sales ' rose to 
$1.73bn - from $1.69bn. our 
Financial Staff reports. 


Japanese profits recovery 
hit by exports recession 


BY YOKO SHKJATA IN TOKYO 


JAPANESE corporations- listed 
on 'the first section of, the 
Tokyo Stock Exchange have 
revised -downwards their earn- 
ings forecasts for the current 
half year . ending March 31, 
according . to surveys con- 
ducted by two leading 
securities houses, Nikko- Securi- 
ties and Daiwa Securities. 

In earlier business forecasts. 
Japanese corporations were 
expected to bounce back to 
large profits in the period* after 
the setbacks in the two previous 
half-years ended March, 1981, 
and September. 1981. 

However, a recent Daiwa 
survey showed that forecasts of 
the growth rate of operating 
.profits has been cut by almost 
half to 16.5 per cent from . 30.8 
per cent forecast in December. 

An unexpected fall in the 
yen’s value which hit the earn- 


ings of oil. refiners and power 
companies, recession in Japan's 
main export markets, worsen- 
ing export riraunstances 
caused by trade friction and the 
delayed recovery of domestic 
demand all contributed to dis- 
appointing earning ■ perform- 
ances. 

Nikko's survey said that 381 
corporations listed on the first 
section of the TSE ' expect a 
15.7 per cent hike . in combined 
operating profits in the current 
half-year, against a -2S.9 . per 
cent boost in operating profits 
forecast in a December survey. 

Export oriented industries 
such as vehicles, electric 
appliances and precision 
machinery, which in the past 
had been a major impetus for 
the economy, have revised 
downward their forecasts for 


the current six months. In. these 
industries, slackening demand 
in both domestic and overseas 
markets cancelled out benefits 
from the yen's deprecation. 
Daiwa believes its index of 
profits will be down to 85 this 
period compared with a base of 
100 at the last peak in. the first 
half of 1980. 

Looking, ahead to the half- 
year starting April, Nikko- is 
forecasting a rise in operating 
profits of 10 per cent on a 1.6 
per cent increase in sales. 

Other securities houses and 
banks are less optimistic. 
Daiwa, for example, expects 
that operating profits will fall 
by 1.8 per cent from a year 
earlier on a 0.3 per cent decline 
in sales. This would be the 
first fall in turnover since the 
half-year ending September, 
197S.'. 


Malaysian banker to buy 
majority stake in AMDB 


BY WONG SULONG IN KOALA LUMPUR 


MAJORITY CONTROL of 
Malaysia's largest merchant 
bank, Arab-Malaysian Develop- 
ment Bank, is' being bought by 
Datuk Azman Hashim. a pro- 
minent local banker, for 56m 
ringgit l'US$24.3m). - 

- AMDB leads -the. sector of 12 
banks with, assets of 1.16bn 
ringgit and deposits of 760m 
ringgit at December 1980'. It 
owns Arab-Malaysian Finance 
Company, ■ one of -the -country's 
leading finance companies. 

The merchant bank reported 
pre-tax profits of 7.9ra ringgit 
and “ shareholders’ ' farids of 
49.5m ringgit for. 1980. 

As part "of the deal .Datuk 
Azman and his family will sell 


their 19 per cent stake in 
Kwoag Yik Bank to a sub- 
sidiary of the Perak .State Eco- 
nomic Development Corpora- 
tion for an undisclosed sum. 

Datuk Azman, currently 
executive • chairman of Kwong 
Yik. "will by 24.888m shares of 
1 ringgit each in AMDB from 
Malaysian Industrial -Develop- 
ment Finance' at 2.25 ringgit a 
share 

IL is also, believed that Mr 
Ghazali Bm Dato Yusof, chief 
executive of AMDB. has bought 
the -5 per cent of AMDB* owned 
by Mr ._ Hjisseiri . Najadi. . .the 
former Bahraini managing 
director of AMDB. who had 
been largely responsible for the 
hank’s growth 


Esso to spend 
$490m in 
Malaysia 

By Our Kuala Lumpur 
Correspondent 

ESSO ■ PRODUCTION Malaysia 
(EPMI>, a wholly-owned sub- 
sidiary of Exxon, will spend 
US$490m on oil exploration and 
development in Malaysia this 
year, an increase of 57 per cent 
from- last year. 

This is equal to 6.37 per cent 
of the expenditure Exxon 
would be investing in its global 
operations, excluding the U.S. 

The money is to be used 
lately for the installation of 
four new production platforms 
off. the coast of Trehgganu and 
the' building Of a crude ' oil 
terminal at' Kerteh, the oil town 
in Trengganu. Both projects 
were started last year. 


Earnings 
and payout 
raised 
at Humes 

By Graeme Johnson in Sydney 

HUMES, the concrete, .steel 
and plastics, pipesr group, has 
increased profits hy 1W P® r 
cent from A$6.33m to 
AS7.68m (U-S-$5m) for the 
half-year ended December 
1981 despite a poor perform- 
ance by its. subsidiary,. Steel 
Mains. "" 

Homes ' rfettlts •„ ‘ exclude 
Humes Far East — which was 
sold last year and which con- 
tributed A$1.35iniD the. com- 
parable ’ 1980 six months— 
and the. recently acquired 
ARC Industries* ' 

The 'interim dividend has 
been increased from 3 cents 
to 4 cents a share on capital 
increased by a one-for-five 
scrip Issue. Turnover fell 
almost 22 per cent from 
A$196.75m to A$153.S9ra. 

Interest charges for the 
half-year fell from A£3.66m 
to ASZ.66in and depreciation 
■was also lower at A$5.92m, 
against ‘A 5 7.1m previously. 

Sharp growth 
for Israel 
Discount Bank 

By L. DaniH ifl.TeJ Aviv 

Israel Discount Bank, the 
smallest -of : ■ the country ’s 
three major banks, reported a 
rise in net profits to Shi 539m 
last year from Shi 240m in 
1980. 

This was an Increase of 12S 
per cent In nominal terms 
and 11 per cent in real terms 
because of Israel's high infla- 
tion rate. Profits in dollar 
terms grew by only 8.8. per 
cent to $34.5m because the 
shekel was devalued by 107 
per cent, against the dollar 
during .the. .year, : 


TMana wa ii B B a H i t p WMii a wuBatlac of record odj. 



JHUKOflKXT 



ior, S. A. 


£31,280,000 


ExedSateLoan ., 

yyfth flin saipport of thc Export Credits Guarantee Department . 
together with a Eurdoan equivalent to 

£5,500,000 

Armngedliy 

N. M. Rothschild & Sons limited 

I'.llO: . '"-Proviaedrby' - 

N. Rothschild & Sons limited 

Banque de Paris et des Pays-Bas (London) 

. Creditansfalt-Banlcvereln • 

Both loans are to provide finance fw fee 
pgAase of T hritedKingd om. educational dpJpMBd&OM ... , 

Darwin. Instruments Ltd^ofCambridge, E wgl aiitL . 

- t . . .For ; -- : — ... 

Tke Ministry of Public Edncation of Mexico 


MBB2t,1982 


international appointments 

Falconbridge top post 


• FALCONRRIDGE NICKEL 

MINES, Toronto, has appointed 
Mr William James as president 
from April 20 succeeding Mr 
H. T. Berry, .who will continue 
as chairman and chief executive 
officer. Mr James, currently 
executive vice president •• of 
Noranda- Stines will also serve as 
chief operating office; of Falcon- 
bridge., .• ... 

• Mr Herbert A. Granath has 
been appointed president, ABC 
VIDEO ENTERPRISES INC. He 
had been vice president tin 
charge, since the division was 
established as a subsidiary of 
American Broadcasting Com- 
panies, Inc., in July, 1979.' 

• Bangor Pun ta Corporation has 
made senior executive moves at 
its Sqiith and Wesson division tn 
Springfield, -Massachusetts. Mr 
Joseph R. Ferrara has been ap- 
pointed senior vice president of 
operations. Mr Robert I. Hass, 
has been appointed senior vice 
president of marketing and sales. 
Mr Robert A. Metzger, formerly 
vice- president— manufacturing, 
was named senior vice president 
— operations with responsibilities 
for production facilities in 
Springfield. Masshchusets and 
Houilon, Maine. 

• Mr Dennis Arrouet has been 
elected treasurer of AMAX INC, 

l_GKcnwich, Cpn. He was assistant 

treasurer.- v . 

• FOREST OIL CORP has 
appointed Mr Richard L. Coons 
as vice-president-regional man- 
ager' for Region I located . in 
Corpus Christ!, replacing. Mr 
Gilbert G. Wright, who is 
retiring. Mr Coons was explora- 
tion manager for Argo' Petro- 
leum Corp, Santa Monica, 
California. 

• Mr Roger Flemtagton, an 
assistant general manager, inter- 
national banking division. 
National Westminster Bank, has 
been appointed to the board of 
its wholly-owned subsidiary. 
-NATIONAL BANK OF NORTH 
AMERICA-: - 

• Mr Harry Gelles has joined 
the Los Angeles office of 
RUSSELL REYNOLDS ASSOCI- 
ATES. Inc., an executive recruit- 
ing firm, as senior vice-president. 


For the past three years be was 
a managing- director- of. Dean 
Witter Reynolds. Inc. 

• WEEKS - AUSTR ALIA- -bas 
appointed Mr R. X. Walford, of 
Melbourne. . a__ director of-- the 
company since its inception, as 
chairman. Mr. J0L . A—Nedonu-of . 
the U.S.. the former chairman 
who resigned jn favour of.. Mr, 
Walford, ..will how serve as 
deputy chairman. Mr J. P. Gold 
has been appointed to the board 
from- .At^t^M.- an'd^ will "become 
managing director. Mr T! B. 
Patrick will continue as manag- 
ing director until April 10 and 
will remain on the board there- 
after. 

• ' MTCOM SYSTEMSw INC., 
Chatsworth. Calif., has appointed 
Mr Chris G. Kember as vice- 
president, sales. He comes from 
IBM. 

• Mr Dennis' J, Dickinson has 
been appointed executive vire* 
president of GENERAL .TIME, 
CORPORATION, a subsidiary of 
Talley Industries, Inc., Mesa, 
Arizona. 

9 Dr Frank W. R. Hubert Chan- 
cellor of tne Texas A and M 
University System, has been 
elected to the board of 
BLOCKER ENERGY CORP., 
Houston. 

• A Briton has landed a top-! 

world pen manufacturing job. 
Mr Stanley Dotey, previously 
managing director and manu- 
facturing chief . at PARKER 
PEN'S UK headquarters, at 
Newhaven, is now responsible 
for the company's world-wide 
writing instrument group, in 
Janesville, Wisconsin v As vice-, 
president of manufacturing -ahd- 
p reduction engineering, Mr 
Dovey is responsible For Parker! 
f actor iee-around- tfie-worid. - 1 

• ■ Mr Kenneth H. Lefifier has 
been appointed an officer, -.as- 
manager, In "the lechaicairper- 
vices department of * the 
FEDERAL' RESERVE; 'BANK 
OF NEW' YORK. " . : 


This announcement appears as a matter <tf record onty 



Societe IvoMenne de Raffinage 

US$60,000,000 

multi-currency medium term facility 


arranged by 

ContmentalDIinois Limited 


provided by 

Bankers Trnst Company 
Banquette I’lndocMne et de Suez 
Barclays Bank International Limited 
Continental Bank S.A. 

Banque Arabe et Internationale cTInvestissement (B.AJJ.) 
Chemical Bank 

The first National Bank of Chicago 
Banque Bruxelles Lambert S*A, 

A1 Saudi Banque 



agent 

Continental Illinois Umiteti 


February' 1982 


t 


le 

at 

•*s 


These iMifkates have teen placedTteamicaincementqip^.as a nettET of record cmiIje 




The Sanwa Bank, Limited 

- EaJ15.000.000 
3-Year Cerijficafeof Deposit Facility 


Cridit Lyonnais 


Banque Internationale de Gestion et.de’Ksorerie-BIGT 


' RbniayT982 



Iniernaiional societe anonyme 

UCENSiBE>t)EPOSIT TAKER 

announees'that from- 
17th March 1982 its base rate 

is changed*-;/ . : : ' 

from 1 3 i% to 1 3% p.a. 

100 Leadenhall Street London EC3 A 3 AD 



BASE LENDING RATES 


■ AHJff: 'Bank 13 % 

Allied Irish Bank., 13“% 

-- American -Express . Bk. 13 % 

Amro Bank 13 % 

- Henry Ansbacher 13 % 

-^Arbuthnot Latham ... 13 % 

Associates Cap. Corp. 13 % 

Banco de Bilbao ..*.^13 % . 

Bca 13 %- 

Bank Hapoalim BM ... 13 % 

Bank Lennjt fUK) pic 2:3 % 

Bank of Cyprus .i.'.Y..'. 13 % 

Bank Btreer Sec. Ltfl. 15 ^ 

Bank df -N^S.W. 13 ;.% ■ Samuel Montagu _. 13 

Banque Belge- Lti ~. IS % ■Morgan Gren/eJI ". 13 

Banque du Rhone et de National Westminster 13 

.la Tamise SA. 13^%_ Norwich General Trust 13 

Barclays Bank" 13 % P. S. Refson & Co. ... 13 v 

Beneficial Trust J-td. — J.4 % . Roxburgh e. Guarantee 14J9S 

B remar HoWrngs- Ltfl-- 14.% U JB..5L Schwab 13 % 

Bristol & West Invest 14 % Slaveuburg’s Bank ... 13 % 
Brit JBanfc of Mid-East 13:%. . Standard Chartered ...1113 % 
■ BririWa-Shipley- ■- Trade -DevJ'Bank 13 % 

Canada Pennt Trust., 14 % _ Trustee Savings Bank 13 % 

CasUe Court Tfcust Ltd. 13i% TCB Ltd 13 % 

Cavendish GTy T’St Ltd. 35*% . - .United .Bank of. Kuwait 13 % 
t ,a ■ . ■ -las*- Wbiteaway Laldiaw:... 13} % 


Robert Fraser ' 14 % 

Grindiavs Bank $13 % 

l Guinness Mahon 13 % 

lHambros -Bank 13 % 

Heritable & Gen. Trust 13 % 

[Hill Samuel 513 % 

C. Hoare & Co f!3 % 

Hongkong .& Shanghai 13 '% 
-Knowslev £■ Go. -Ltd-.' ... 131 % 

Lloyds Bank 13 % 

MaJlinhaU Limited ■ ... 13 % 
Edward Manson & Co. 14J% 

Midland Bank 13 q;; 

% 
% 
% 


.Owner Ltd,. .—.-.—'...- 23 l .. 

Cddar Holdings /v 14 % 

I Charterhouse Japnet... 13 % 

Choulartons J.4 

Citibank Savings'; J12|% 

Clydesdale Bank 13 %■ 

C. E. Coates — 14 % 

Consolidated Credits... 13 

Cooperative Bank *13 % 

Corinthian Sees 13 % 

The Cyprus Popular Bk. 13. % 

Duncan Lawrie 13 % 

Eagil Trust ] 3 % 


: WiHiams tGlyn’s -: 13 % 

"Winirusi Secs. Ltd. ... 13 % 
Yorkshire Bank ......... 13 j£ 

■ Members' oi the Accs'piing Houaao 
.* CammiUM 

* 7;d»y deposits • tO%, t -month 
"• iojS*i. Short farm £8.000/12 
‘ montn 1ZB%. 

t ?-a«y dopos’ts on sums of: undor 
no.000 to 1 *-.;. ElO.OOO up to 
£50.000 TJ%, 150,000 and over. 

ir-i-A. ‘ 

Call depwm £t.000 and over 


* - w 4 MQU sail 

— Ett-z -Truft ■ ^ 

• - qgzjL- ~at?a ’ssm^.ixo riv» 

First Nau Fin. Corp.... 161% j Oaraand depoaiu 
First Nat Secs. Ltd. 16i% i Mon B a B > b»» «»■ 


- This announcement appears as a matter qf record onfr. * 


ME W JS S UE 


March 1982 



IRELAND 


Bwqoe de Paris et des Pays-Bas 
BankofCbioa 


U.S.$ 100.000,000"- - 

Roating Rate Notes Due 1989 

S nmftnmn T InanraTntemaifiimal 

NationalBank of AbnDhabi 


County B ank T .imit ed 

European Banking Conqtauy Limited 

Goldman Sachs International Corp. 

KIeinwoit,Benson Limited 


■t 


o.u'fiV HZ ?&?*.'< rs ?% w b S'H-Scr V &<$ 8,g o B a B . 



Financial Times Wednesday March IT 1982- 


Conpaoies and Markets 


WORLD STOCK MARKETS 







Mn? 







m 














eway G 


14 

n Form 
n Grp. 

an B 

30 

27 


’S 










468a 1 

467g 

228a i 

92Sft 



Columbia Gas 29 

Columbia PlcfcJ 647 a 

Combined Int 1 2 qj* 

Combu*tn.%EngJ 264 
Cmwlth. Edison. i 204 
Comm. SatelihU' 55- 


Comp. Science... 12 ig 

Cons Mills. 285, 

Conn Gen. Inn.... 46 

Conn ie.. _.J 214 

Cons. Edison 3*4 

Cons. Foods. I 32Sg 

Cons, Freight—.] 34 

Con. Nat. Gas 40J* 

ConsumorPowar 17 U 

Cont, Air Lines...! 3i« 

Conti, corp. „i 264 

Conti. GrOUP«....| 296g 

Cant Illinois — .^.j 28 
Conti. TeJep....... IB lg 

Control Data. | 304 


Cooper Inds..—.; 

Coon Adolph. .] 

Copperweld....:..1 l . 
Corning Glass — I 
Corraan Block — ! 
COX Broadcast's.) 

Crane 

Crocker Nat...... 

Crown Cork I , 

Crown ZeU »i, : 

Cummins Eng....' ■ 
Curtim-Wright.-, 

Damon ... 

Dana 

Dart ie Kraft......; 

Data Csn_ - 

Dayton-Hudson J 
Deora 

Delta Air. 

Denny’s... I 


Dentaply Inti 1 14 

Detroit Edison 1 114 

Diamond Inti 393g 

Diamond Shank.. 1 2l r a 

Di Giorgio 8Je 

Digital Equip ; 743, 

Dillingham I 11 4 

onion :...: 2 oi« 

Disney (Wait/ ; 484 

Dome Mines 11 

Donnelly (RIO 434. 

Dover Corp ‘ 203, 

Dow Chemical....! 214 

Dow Jones. I 45ag 

Dresser i 234 

Dr. Pepper. ; in* 

Duka Power 25 

Dun & Brad ; 603 b 

DuPont. 35 ij 

EG&G 16 


Easco - « 

Eastern Airlines. 
Eastern Gas & F ! 
Eastman Kodak.; 

Eaton ! 

Echlin Mfg j 

Eckherd Jack.... 
Electronic Data.: 
Elect- Memories; 

El Paso..-. | 

Emerson Elect... 1 
Emery Air Fgt.J 

Emhart ....1 

Engelhard Corp.] 





Enserch I 

' Enviroteeh. 

Eamark.— 

Ethyl ......I 

Evans Prods 

Ex Cell O .....' 

Exxon ..J 

FMC 

Faberge. ....... | 

Fodders.,™...-...! 

Federal Co 

Federal-Mogul...! 
Fed. Nat. Mort-..l 
Fed. Paper Brd...i 
Fed. Resources J 
Fed. Dep. Stores] 
FialdcrestMl— .. 

Firestone 

1st Bank System 
1st Charter Fin. 


1st Chicago 

1st City Bank Tex 
1st interstate.... 
1st Mississippi.... 
1st Nat. Boston. 

1st Penn. 

Flsons _ 

Fleetwood Errt... 

Flexl-van 

Florida Pwr A L.. 
Ford Motor.....’... 
Foremost Mck... 
Foster Wheeler. 
Freeport McM.... 

Fruehauf 

GAF! .; 

GATX_ — 


454 46 <8 

184 IB 
114 114 

194 194 

29 Ig 29 
25 25 

147, 137 ( 

34 34 

305g 203a 

1B3b 1968 
77 B 6 

265a 264 

14 14 

40sa 414 
S03, 204 
104 10 >a 

31 31 

74 768 


184 I 194 
264 264 

294 294 
96a 96a 

407a 414 

24 25a 

54 64 

124 124 

134 13 4 

309a 305a 

19 194 

344 344 

124 114 

163, 156, 

184 184 

9 9 

264 264' 


MfcrayHanover_j 307a 
Msnville Corp..—' 154 


Gannct 297a' 

Galco 17 is 

Gen Am Invest ... 144 

Gen Cinema 38 

Gen Dynamic*.— 204 

Gen Electric. 5B4 

Gerr Foods; 32 5g 

Gan Instrument. 315, 

Gen Mills 365s 

Gen Motors 384 

Gen Pub Utilities 46, 

Geii Signal 334 

Gen Telep Elee-.i 304 

Gen Tire — j 185, 

uenesqo ..j 4ia 


Genuine Parts....] 
Georgia Pac . — 1 

Geosource 

Gerbes Prod 

Getty Oil 

Giddins Lewis.... 

Gillette — 

Global Marine — 
Goodrich (BFI... 
Goodyear Tire... 

Gould 

Grace — 

Grainger (WWL-i 


324 ' 524 
154 156, 

29 284 

27 274 

463, 445q 

177a ■ 174 
324 337a 

123, 124 

197b 197b 

204 204 
214 21 
557a 364 

37 * 374 


Mar. Mar. 
15 1 12 


MGM ! 84 

Metromedia .1634 

Milton Bradley..! 164 

Minnesota MM..., 50 
Missouri Pac — 58 

Mobil - 234 

Modem Merohgj 74 

Mohasca 10 

Monarch MiT,„. 174 

Monsanto 614 

Moore McCmrk.’ 244 

Morgan- (JP) 83 

Motorola 814 

Munsingwear ...' 144 
Murphy iGC) . — ' 10 

Murphy Oil 194 

Nabisco Brands.. 514 
Nalco Chem... — 43 

Nopco Industries l4Sg 

Nat. can.. 

Nat. Devolt- 214 

Nat. Diet. Chem- 214 
Nat Gypsum — ' 214 
Not Medical Ent 124 

Nat Semicductr. 1 197 b 
N at Service Ind.. 237ft 
Nat Standard... 124 

Nat Steel 184 

Natomas 164 

NCNB. 134 



NCR. - • 

New Eng land £U 
NY State E AG...; 

NY Times ! 

Newmont Minin? 
Nlap. Mohawk....( 

NICOR Inc. J 

Nielsen (ACi A... ; 
NL Industries 
NLT — 


Norfolk A Westn 
Nth. Am. Coal... 
Nth. Am.f Philips 
Nthn. State Pwr.. 
Northgala Exp... 

Northrop j 

NWest Airlines... 
NWest Bancorp- 

Nwest Inds 

Nwestn Mutual-' 
Nwest Steel W ...1 

Norton J 

Norton Simon ....| 
Occidental Pet.; 
Ocean Drill Exp. 

Ogden : 

OgfJvy & Mrth. 

Ohio Edison ' 

Olln I 

Omark- 

Oncck.. _.[ 

Out board Marine] 
Overseas Ship...., 
Owens- Coming. 
Owens-Illinois ....; 

PHH Group 

PPG Inds I 

Pabst Brewing..- 
Pac. Gas A Elect: 

Pao. Lighting • . 

Pac. Lumber.....! 

Pac. Tel. A Te!...l 

Palm Beach > 

Pan. Am. Air. j 

Pan- Hand Plpe.| 
Parker Drilling ...| 
Parker Hanfn-...! 
Peabody lntl—./ 
Penn Central — ; 

Penney (JCJ ] 

Pennzoll. | 

Peoples Energy ■ 

PepsiCo -.1 

Perkin Elmer | 

Petrie Stores 

Petrolane ....... 

Pfizer 

Phelps Dodge — 

Phila Elect 

Phlbro 1 

Philip Morris ! 

Phillips Pet ..... 

Pillsbury 

Pioneer Corp.....! 
Prtnay-Bowe* 

Pittston j 

Planning Res’ch I 

PI essay 

Polaroid 

Potlatch 

Prentice Hall | 

Procter Gamble.; 

Pub.Serv. E AG. 
Pub. S. Indiana... 

Purax. 

Purolator 

Quaker Oat*—— 

Quanex- ....... 

Questor 

RCA— ..... 

Raison- Purina-.. 
Ramada inns — 
Rank Org. ADR. 
Raytheon........ 

Reading Bates... 
Redman Inds — 

Reeves Bros 

Reich hold Chem 

Republic Stee I... 
Rep of Texas...... 

Reach Cottrell... 
Resort lntl A — 

Rovco (DS) 

Revere Copper . 

Revlon - 

Rexnord 

Reynolds (RJ) — 
Reynolds Mbs... 

Rite Aid 

Roadway Exps... 
Robbins (AH)..... 
Rochester Gas.. 

Rockwell Inti 

Rohm A Haas.... 
Rollins 


20 j 20 

124 125, 

194 IS 4 
244 ■ 241, 
177a > 184 
317 t j 314 
134 134 

21 se ‘ 214 

24 - 24 . 

21 21 


Schlitz Brew ... 
Schlumbeger— 

SCM .... 

Scott Paper-,. ... 
Scudder Duo V-' 
Season 

Seagram...... 

Sealed Power— 

Searlo (GO) 

Sears Roebuck.. 
Security Pac.....' 

Sedco ...... 

Shell Oil ... 

Shell Trans 

Sherwln-Wma.,.. 

Signal 

Slgnodc ......... 


Simplicity Patt... 

Singer. ... 

Skyline 

Smith mu .. — • 
Smith Kline Beak 

Sonesta Inti 

Sony 

Southeast Bankg 
Sth. Cal. Edison.- 

Southern Co i 

Sthn. Nat Res. ..; 
Sthn.N.EnflrTel., 

Sthn Pacific 

Sthn. Railway-... 

Southland 

SW Bancs hares- 

Sperry Corp ' 

Spring Wills 

Square D 

Squibb 

Std. Brands Paint 


Std Oil GIlTornla.; 
Std OH Indiana...!. 

Std'Oil Ohio 

Stanley Wks ...... 

Stauffer Chem ...; 
Starling Drug — ..1 
Stevens (JPi — .1 

Stokely Van K 1 

Storage Tech. —- 

Sun Co 

Sund strand > 

Superior Oil " 

Super Vai Str*.„ 

Syntax. I. 

TRW , 

Taft 

Tampax | 


Tandy ] 284 

Teledyne 1144 

Tektronix.. : 434 

Tenneco .j 26 U 

TesoraPet ; 184 

Texaco— ! 805a 

Texas Comm. Bk' 344 
Texas Eastern...; 414 
Texas Gas Tm... 1 234 
Texas Instr'm'ta.! 763, 
Texas OH A Gas.. 234 
Texas Utilities..-- 214 

Textron -• 207» 

Thermo Electro-; 16 
Thomas Betts..:- 444 

Tidewater ; 23 

Tiger Inti...— 74 

Time Inc. 334 

Times Mirror.—; 394 


Timken 

Tipperary. — 

Tonka — 

Total Pet 

Trane ... 

Tramaamerica 
Transway—.. 
Trans World... 

Travelers 

Trl control - 


..] 55 ; 65 

ID 95b 
- i 234 ! 234 
.. 84 ; 85ft 

J 27 27 4 

194 < 1968 
-I 22 ' 215s 

J 194 ! 194- 
...; 48 > *84 

! 64 1 64 


Tri Continental...] 
Triton Energy--., 

Tyler 1 

UAL- 

UMC India. 

Unilever N.V. — 

Union Camp 

Union Carbide— 


I 174 ! 177 a 
! 104 I 104 
1B7 8 187 b 

I 173a I ,175a 
, 74 . 758 
574 60 

, 465ft > 464 
j 43 I 43 


Rolm .... 

Roper Corp 

Rowan 

Royal Crown 

Royal Dutch 

Rubbermaid 

Ryan Homes 

Ryder System— 
SFN Companies- 
SPS Tachnol'gies 

Sabine Corp. 

Safeco 

Safeway Store* .. 

St. Paul Cos - 

St. Regis Paper... 

Santa Fe Inds 

Saul Invest.... 

Saxon Indus- 

Sobering Plough. 


Union OH Cel—! 
Union Pacific-.... 

Uni royal - 

Untd Brands. | 

UteL Energy Re*. 
US Fidelity G....„. 
US Gypsum..—... 

US Home..— 

US Inds— 

US shoe 

US Steel 

US Surgical 

US Tdbacco— .... 

US Trust- _... 

Utd. Technolgs- 
Utd. Telecom ms. 

Upjohn 

VF 

Vartan Assocs— 
Vsmitron — — 


Virginia EP 

Vulcan Matris— 
Walker |H) Rea... 
Wal-Mart Stores. 

Wamaco ... 

Warner Comma..! 
Wamer-Lambt ...| 
Washington Post, 
Waste Mangt— I 

WelsMkts I 

Wells Fargo- \ 

W-Polnt peppl—l 
Western Airlines! 
Westn. Nth. Amrj 
Westing house .... 

Westvace - I 

Weyerhaeuser....] 


Wheeiabratr F ...1 
Wheeling Pitts...] 

Whirlpool 1 

White Consoltd- 

Whittaker 

Wlckes - I 

Williams Co 

Winn-Dixie Str.... 

Winnebago 

Wise Else Power 

Woo I worth 

wrigley 

wyiy 

Xerox - 

Yellow Frt Sy> ... 

Zapata - 

Zenith Radio — 


294 1 284 
36 ' 344 

87| 6Tg 

85fl ; 84 
297 b 294 

443, 44?a 

306b 304 

12 126a 

84 86a 

264 264 

234 234 

18 178, 

444 448a 

354 354 

325fl 32Se 

19 194 

447a 448e 

334 33 
284 29 

83, 85a 


124 ! 125b 

455, 444 

1178 11Tb 
397b 404 

244 244 

523, 513, 

224 224 

284 284 
274. 267a 
387 b 384 

214 22 

204 204 

33, 3Tg 
124 114 

224 223, 

217 S ! 22 
264 i 264 


Low High Low 


ind. dhf- yields 


Mar. 10 

| Mar. 3 

Feb. 84 

Year ago (approx 

6.09 

j 6.Q0 

6.03 

4.60 

7.37 

1 M? 

7.62 

9-.16 

16.16 

13.01 


18.52 


ITALY ■ J 

Banc* Comm ItaIX1972) 205.08 205.1a J0Z.Z5 




mm 

NORWAY 

Oslo EE (1/1/72) 

111J8 

SINGAPORE 

Straits Times (1SBB) 

SI 

SOUTH AFRICA 
Qok/nfiW) . . 

Iridustriai (1959) 

(u) 

In) 1 


8018.14 (17m 8818.38 (1615/82) 
G05JB2 (17,0) 486.78 (811/BI) 


148.72 (6/8) 


110.54 (5/0) 


687.40 (0/3/82) 


409.66 (27/6) I 2708 fl5/3rt2> 
B75J8 (13/8) 1 2B8JB <16/5/821 



1B74.B] 259036 (16/7) | 1657.8 (16/3/821 1 SwiSlBankCpn^51/12/S8)| W6J [ I I QH) jl42 J (11)5/82) 


TORONTO composite I 1537-6 


NEW YORK ACTIVE STOCKS 
Change . 


Stocks Closing on 
traded price day 


Monday.' 


Change 

Stocks Closing on 
traded price day 


IBM 620 M0 587. +! Gen. Tel. A H. 453,000 3t* - \ 

Sony 49lj400 121, - 4 • Coastal Corpn. 392.9® ^ 

~ afl ^ f " .on ano 294 + 4 Tandy 372.500 284 +1*i 

sa ar sss a =& -asas -«ss ? r+z 


Cap^bH lntl. (1/1/701 — ! IM.O 150J i HM 182.8 ( 8 /I/ 8 I) • ISOJ M 2/5/82) 

(—) Sat. Mar. 13: Japan Dow 7,125.41. TSE 534.80. 

Base values of all indices are 100 except Australia All Ordinary and Metals— 
500: NYSE All Comon— - 50: Standard and Poore— 10; end Toronto— 1,000: the 
last named based on 1975- i Excluding bonds. 1 400 industrials. S 400 
Industrial* plus 40 UtliiilM. 40 Financials and J2D Transports, c Closed. 
1 u Unavailable. 


Firmer early Wall St tren 




A FIRMER tendency prevailed 
an Wall Stree; in {airly active 
early dealings yesterday, but 
analysts attributed the gains to 
technical factors rather than 
any change In the negative 
news background. 

The Do iv Jones Industrial 
j Average moved wirhiu a narrow 
range ail morning, and was a 
medest L33 up at 802.32 at 1 
pm. The NYSE All Common 
Index picked up 30 cents to 
S63.1S, while rises outscored 
declines by a seven-to*four ratio. 
Trading volume expanded to 
3-LSTm share, from Monday's l 
pm figure of 2SJS2m. 

Hifdegarde Zagorski. of Bache 
Group, said the market was 
overdue for a technical rally. 
Up . to last Friday, the D-J 
Average had dropped over 77 
points so Ear this year, and many. 
Technology and Energy stocks, 
traditional market leaders, were 
trading at or near their 52-week 
lows. 

However, 'analysts question 
whether the rally would last, 
and noted that trading is -not 
nearly as active on the upside 
as it was when the market was 
sliding down over the past few 
weeks. 

A sustained uptrend may be 
prevented by a rise in the Prime 
Rate back up to 16* per cent by 
all four of the major basks that 
moved down to 16 per cent last 
week. 

Energy and Technology stocks 
benefited from bargain hunters 
buying up th“ stocks that have 
dropped sharply in recent weeks. 
General American Oil rose 2} 
to $29, Motorola 1* to $53, Texas 
Oil and Gas $1 to $24} and active 
Digital Equipment 2 to $75f. 

Detroit Edison - was the 
volume leader but lost } to $11} 
on turnover of about 611.000 
shares. 

-Citicorp hardened 1 to $25} 
in heavy trading on raising its 
divid end. 

THE AMERICAN SJ5. Market 
Value Index retrieved L25 at 
246.18 at 1 pm. Volume 2.97m 
shares (2.51m). 

Closing Prices for North 
America were not available 
for this edition. . 


CANADA 

Mar. i Mar. 
Stock * 15 ] 12 


Amdahl was the most active 
stock and fell 3} to $19£- On 
Monday, the company ’said- it 
expects fiscal nine-months 
earnings to be significant^ lower 
than last year. 

Canada 

Markets in Canada also 
recovered some ground yester- 
day morning in moderate 
activity. The Toronto Composite 
Index — put on 9 l 7 to U547.3 at 
noon. Golds improved 42.5 in 
2JB74.7, Oil and Gas 10.5 to 
2.381.2 and Metals and Minerals 
11.0 to 1,434.7. 

.Tokyo 

Stock prices fell sharply over 
a wide front, taking the Nikkw- 
Dow Jones Average down 161.69 
to an lS-month low of 6,916.99. 

This is the lowest closing 
point for the Average since 
standing at 6,915.40 on Septem- 
ber 2, 1980. Yesterday's drop 
was the ninth-largest on record. 
The severest one-day fall re- 
corded was 302.84 on September 
28. 1881. 

Dealers reported active selling 
by speculative investors in a 
market where buying interest 
had dwindled because of gloomy 
economic prospects in both 
domestic and export markets. 

The Tokyo SE index dipped 
9.68 to 523.07, while declines 
outpaced gains by 557 to 108 cm 
the First Market after volume 
of 300m shares (230m). 

Issues related to Government 
spending retreated oo profit- 
, taking, losing ground gained in 
recent weeks in anticipation of 
accelerated public works out- 
lays, which were announced 
yeserday to stimulate , the 
Japanese economy. 

A stock analyst at Daiva 
Securities said “ the market com- 
pletely neglected the Government 
announcement yesterday on 
economy stimulating measures, 
and sentiment was dampened by 
worsening economic conditions 
in Japan and the U.S ” 

The. yen's weakness against the 
U.S. ‘dollar also discouraged 
interest, deepening fears that 


recent continuous selling by 
foreign investors might acccie*. 
rate, dealers added. , , 

Matsushita Electric slipped Y32 
to Y978* Hitachi Y36 to Y550. 
Toshiba Y2S to Y293. Mmj 
S teel Y5 to Y151. MUsubbM 
Heavy Y II ID Y199, Fuji P&® 10 
Y50 to Y 1,190. Canon \21 to 
Y761, Toyota Motor Y13 to YS9£ 
Sony Y7Q to Y2.9S0 and TDK 
Electronic Y110 to YS.15Q. 

Pharmaceuticals declined on 
profit-taking and liquidation Of 
margin buying positions after 
recent idbriths of advances. High- 
technology issues, such as 
Optical Fibres, Robot Manu- 
facturers and makers of new 
ceramic materials, also featured 
in the selling. Taked* Pharma- 
ceutical shed Y41 10 Y860. 

Australia 

A late wave • of “ bargain " 
buying by institutional In- 
vestors caused selected stocks to 
rally after an extremely quiet 
morning session.' although the 
overall market was little better 
than mixed. 

Attracting a good deal of the 
support were some of the 
recently depressed OH and Gas 
issues. Brokers said major local 
institutions arc anxioiis to rc- 
’ invest unused liquidity in securi- 
ties. Oil and Gas shares have 
led the market's sharp fall this 
year. 

The Australian All Ordinaries 
Index regained 6.1 at 464.8. Oil 
and Gas 15.2 at 401.3, Metals and 
Minerals 4,0 at 329.7 and Alt 
Industrials 3.6 at 615.3. 

BHP, which has substantial oil 
interests, posted a new three- ■ 
year low of A57J24 initially, 
before moving ahead to AST .50, 
up 22 cents on balance. CSR 
advanced 15 cents to A82.9S. 

In the ' Oil and Gas sector. 
Santos recouped 40 cents at 
AS4.25. Yam gas 36 cents at 
AS5.60. Bridge 011 25 cents at 
AS2.9Q, Am pal Exploration 20 
cents at A82.25, Crusader Oil 20 
cents at A83.00, Alliance 011 9 
cents at AS1.05 and Claremont 
12 cents at 82 cents. 

However. Leonard . Oil lost 11 
cents to 23 cents and -Hartogen 
Energy 15 cents to A$3.50. 


Paris ; /iT-^-Vv.vw- ■ 

Shares mostly iajHrawrf to 
quiet trading on '.tataoteal 
factors. • The- Iwnci ftw r-.-^t 
Tendance index rose L8 to 
114.4. 

New's of h larger baUfcdo of ' 
payments deficit in fh* fourth, 
quarter of 2951 nut a rise lathe 
Call Money Rate l» I4i per coir 
from 14+ failed to restrain The 
market. 

Germany 

Bourse prices were, mixed, 
although trading activity picked 
up somewhat after rectal Hcttas 
sessions. 

Bank shares provided i^rtn 
sector, Deutsche Bunk gain ing 
DM -1 and Drcsdner lank 
DM 130 at DM -n T : . 

Hong Kod^ 

Bargain hunters, encouraged 
bv the steadier, tfisimao 
performance on Wafl Strew 
overnight, bought . Hong -Kong » 
stacks yesterday, lifting . the 
market after Monday’* retreat. 

The Hang Seng index., which 
receded 35 points The previous 
day, recovered 2320 to 1.185.13, 
Trading, bowever, remained 
light, . turnover 
HKS143.13m - on the , four 
exchanges-, almost 1 nHrtphft/g-- 
Monday’s HK5144.57m. . • - 

Cheung Kong gained: 40 cents - 
to HK515.60. HK Bank 20 cents 
to HK524.70. HK Electric .12,5 
cents "to HKS5.00, - JajspSoe 
Matheson 40 cents to HKS1S20 - 
and Swire PwAfie “A” 45;.cencs_ 
to HKS10J0. " 

Carriau Investment - put rai 
22.5 cents to HKS3.7IX.-TM 
Cheung 10 cents to HK&Lm jmd 
Stelux 20 cents to HKSaJffi.- • - 

Jobaoneslnirg 

Responding to the rally.fri the 
Bullion price. Gold shares 

recovered some ground In cpriet 
dealings. Western Deep "picked • 
up R2.75 to R29^5, Kloof RL50 1 
to R2S.50 and Buffelsfontefn R2 
to R35.50: - ••• ’ : f 

- Gencor. improved 50 eere to . 
R19.50 in mixed Minthg 

Financials.* . 


AMCA Lntl 

AbltibL. : - 

Agnico Eagle-... 
Alcan Aiumin— 
AJgoma stoel.—J 

Asbosto* ... 

Bk. Mantraal..k..l 
8k. Nova Scotia. 
Basic Raaourees, 

Ball Canada—....! 

Bow Valley ' 

BP 'Canada 

Braacan A. (' 

Brinco 

B. C. For«st___i 

CILInc.„ , 

Cad II lacFairview; 
Camflo Mines.....; 
Can Camant._._i 


17sa ! 175« 
IOI 4 lOig 
25U { 25T 8 
181* 183* 

5 | a 
a 9H 
24 24 

93ft 91ft 
11 12 
#i« 1 91 a 


Can NW Lands-.! 19Sa 
Can Packers- j.! 30 

Can Trusco I 273* 

Can Imp Bank.- 25 
Can Pacific—...! 29»« 

Can P. EttL. j 151* 

Can Tiro. J, *i»« 

Criiaftaln | 157, 

Cominco- *4^3 

Cons Bxthst A_„ 144* 
Cont. Bk. Canada 71* 
Coseka Rasrc'es Bfia 

Costain.... 7ifl 

Daon Devei [ 3^0 

Denison Mines -.1 21 
Dome Mines..„.„| 13 

Dome Petroleum] Bij 
Odm Foundries A! 333^ 
Dom Stores — — 156a 

Domtar. 17>g 

FaloonNiolnl 55 

Genstar., 17ift 

Gt-WestUfe. [225 

Gulf Canada — .1 11 
Q ul /stream Re*-.; 2.S0 
Hawk Sid. Can^_| 116a 


Hudson BayMngl 18i» 

Hudson's Bay ; 20ij 

do. OH & Gas... 48 

Husky oil | 65a 

I mas co > 40' 

impOilA J 20i* 

In co I 14 

Indal 13i* 

Intar. Pipe I 15 


Mac Bk»del 1 

Marks ft Spenearj 

Massey Ferg , 

McIntyre Mines- 
Merland Exp lor J 

Mitel Corp 1 

Moore Corp 1 

Nat. Sea Prods A 
No ran da Mine* J 

Nthn. Tatoeam_ 

Oakwood Pet. 

Pacific Copper— 
Pan can petrol— 

Patino 

Placer Dev 

Power Corp — 

Quebec Strgn — 


205* I 203* 
91* 91* 

2.60 2.65 

28 301a 

6 63a 

217a 213* 

373* 38 

67 # 7 

163* 165a 

BO BUft 

7ift 7i- 

L32 1.35 

03*2 533* 

20 20 
116a 117a 

121* 121* 

2.02 1.96 



Ranger Oil Bi® era 

Reed Stenhs A 1U* ' ll*s 

Rio Algom - 321a 34 

Royal Bank.: 22ss ' 22ag 

Royal Trust co A- 13 la 131* 
Sceptre Res. — 8sa 55, 

Seagram 56** oSU 

Shell can OH 36 ! 157a 

Steel of Can A._i 23 1 26 


reck 73* 8 

Texaco Canada-. 221* 23 le 

Tflomaon NewsA 23 2a 
Toronto Dom Bk.] 37«e 273* 

TntnsCan Pipe 22 ■ 231* . 

Trans Mntr.Oil A -Sift 8H |q 

Utd. Sisco Mines 4.80 4.30 I 
Walker (H) Res-. 143* 141* I 

Westcoat TTans— 13 is 13 ij I 
Weston (Gao) j 35 35 I 


AUSTRIA 


16 Price + ot 


1W.45 (SlZfBZ) 

S3. XI (J/I/82) 

flfiOJI (ID/8) 

404.17 (39/1/81) 


























































































































































J!maiiaal!time& .Thiirsdav: March 1S I982 


i 


Financial Times Wednesday March 17 1982 

Conpanles and Markets 


29 


COMMODITIES AND AGRICULTURE 


t 


Zimbabwe 
tobacco 
demand up 

Bjr Tony Hawkins in Salisbury 

ZIMBABWE'S tobacco auctions 
opened with good prices and 
industry sources predicted that 
the firm beginning to the sales 
’was likely to be maintained. Mr 
' Burt Palmer, the president of 
the Zimbabwe Tobacco Associa- 
tion which represents the 1,270 
flue-cured tobacco growers, said 
there -was strong bidding on the 
floors and prices were “ slightly 
higher “ than a year ago. 

. Prices for the top quality leaf 
' reached 200 Zimbabwe cents 
(XJ.S-270 cents a kilogram). 
The average price for the first 
day’s sales was 1 52. 4S Zimbabwe 
cents (U.S.206 cents)-e-up 12 per 
cent on the opening price a year 
■ago. 

Mr Palmer said it was too 
early to assess market condi- 
tions and it would take three 
or four days for a buying 
pattern to establish itself. 

Farm incomes 
show nil growth 

. By Our Commodities Staff 

REAL INCOMES of farmers in 
the eastern counties of England 
are on average no higher than 
they were in the mid-1950s, 
according to a study published 
by Cambridge University's agri- 
cultural economics unit. 

The study, compiled by Mr 
Jf. C. Murphy, shows that the 
recent decline in money incomes 
coupled with high inflation has 
taken rpal earnings down to 
levels last- seen in the earlv 
3970s. 

Compared with 1970/71 real 
incomes per hectare in 1980/81 
for farms in the region engaging 
in cereals, mixed cropping, pigs 
■'and poultry.' mixed farming and 
Fen arable all showed nil 
growths Real earnings for 
dairying with arable farms fell 
7.8 per cent. 

While pointing out that the 
recession and high unemploy- 
ment have .depressed food 
demand, the author notes that 
some of the effects of this shm.iin ! 
be rushionert by the EEC’s 
common ncricullural polio-. 

“Nevertheless net farm in- 
comes in real terms is now for 
the second year in succession 
demonstrating symptoms of de- 
cline because productivity gains 
in farming have not been able 
to Counter the pincer effect of 
falling real, prices ;atod rising 
real costs.’* he says. ' 

. Report on Funning in the 
Enstcrn Counties., of . England 
19&0&1, pride £4. 


North-South rift 
in farm talks 


BY LARRY KLINGBl IN BRUSSBS 


THE European Community’s 
North ■ South problem has 
emerged’ as a major obstacle to 
any quick agreement by the 
EEC on fixing guaranteed farm 
prices for the fast-approaching 
new marketing year. * 

Not only has France directly 
linked obtaining a far-reaching 
reform of EEC rules governing 
Mediterranean produce . with 
any agreement at this year's 
price fixing, but the new Greek 
Government has tabled a 
demand for special treatment 
for its farmers. 

The demand by France, sup- 
ported by Italy and Greece, 
that aid for producers of 
Mediterranean products be in- 
creased and extended to cover 
more products has already met 
with strong reservations from 
its Northern neighbours, espe- 
cially from Britain. 

Mr Peter Walker, the British 
Agriculture . Minister, said at 
yesterday’s EEC farm council 
meeting that sums representing 
the equivalent of '* hundreds of 
millions " of dollars could be 
involved. The figures for olive 
oil alone could be of “ enormous 
proportions.” he said. 

Britain, supported by other 
Northern member states, parti- 
cularly objects to, and seems, 
prepared to veto, the French 
suggestion that oMve oil could 
be treated separately from 
other Mediterranean products, 
suspecting the proposal is pri- s 
manly a further tactic to 
obtain EEC approval for curbs 
on competing vegetable oil 


imports. 

• Greece, on the other hand, 
has proposed - a range of 
“special . status"’ measures, 
leading to .fears among- other 
member states that its requests 
could be followed by similar 
ones from Italy and possibly 
affect negotiations vrith Spain 
and Portugal oa their forth- 
coming accession to the EEC. 

The Greek proposals, which 
provoked one Northern minis- 
ter to comment that the 
Greeks ■ “simply want -more 
money for everything they 
grow, could grow or might 
want to grow," include upward 
revision of guaranteed prices 
to full EEC levels from the 
lower levels set in the transi- 
tion arrangements when Greece 
joined the EEC. 

At one point in yesterday's 
talks. Herr Josef Ertl. the out- 
spoken West ' German Agricul- 
ture Minister, suggested that 
olive oil- could become the 
' “ Mediterranean charity.” Sig 
Giuseppe Bartolomei, . the 
Italian Minister, later described 
the remark as an “insult” to 
Italy. ” 

Italy, like . ‘Greece, is also 
arguing for special considera- 
tion for its fanners because of 
current inflation rates in the 
two countries which are run- 
ning at about 17 and 24 per 
cent respectively. 

In any case. Sig Bartolomei 
said. Hie support prices and 
subsidies for Northern products, 
are . consistently higher than 
those for Mediterranean pro- 
duce. 


Sharp falls in cocoa 


BY OUR COMMODITIES STAFF 

REPORTS THAT the Interna- 
tional Cocoa Organisation buffer 
stock had begun “ rotating " its 
stocks by swapping prompt 
delivery' physical cocoa for 
later d Hi very supnlies led to 
sham falls in neariiv values on 
the London futures rparkrt ye*- 
terdav. The Vw nuotation Ml 
the .€40 permissible limit hv 
mid-afternoon and edged still 
lower after the mandatory lb- 
minute break in trading. At 
the close it was quoted at 
£1,108.50 a tonne,; down £43 on 
the day. 

The buffer stock manager is 
reported to hare swapped with 
a London trader 5,000 tonnes of 
Ivory Coast cocoa" for an equal 


amount for May delivery. The 
price differential will ease the 
buffer stock finance problems 
a little while- the prompt cocm 
should .relieve the tight nearby 
suoply situation. The Ivorian 
cocoa may not be deliverable 
against the London futures con- 
tract itself but it should release 
a similar amount of qualifying 
cocoa for delivery. 

■ Traders said the market re- 
mained cautious while awaiting 
the outcome of the ICCO meet- 
ing in London at which offers 
of loans from a -group of 
Brazilian banks and a Saudi 
Arabian financial institution to 
extend the buffer slot* fund are 
being considered. 


Rally in 

copper 

market 


By John Edwards. 

■Commodities Editor 

COPPER prices Tallied on the 
London Metal Exchange yester- 
day following the rise in gold 
and a firmer trend in the U.S. 
Asarco announced two rises in 
its domestic selling price for 
copper in the U,S. taking it back 
up again to 74 cents a lb, after 
the cut to 72.50 cents announced 
on Monday. 

The market was more inter- 
ested. however, in rumours of 
a forthcoming announcement by 
Kennecott. the biggest U.S. 
copper producer. It is believed 
this might either involve a cut 
in output or changes in the 
company's pricing structure. 

Union Miniere said yesterday 
it was closing its copper mine In 
Ontario because of low metal 
prices. In Quebec Noranda 
announced negotiations were 
continuing on the. terms of new 
labour contracts to replace 
existing contracts expiring on 
March 22 at the giant Canadian 
Copper Refinery. It is under- 
stood that the union served 
notice of its intention to strike 
around January 20 but this may 
be because of the 90 days notice 
required of a strike under 
Quebec law. Meanwhile in Peru 
over 10,000 workers employed 
by the state-owned mining com- 
pany, Centromin, have signed a 
new annual pay settlement. 


Short tea 
supplies forecast 

By P. C. Mahan d in Calcutta 
MR B. K. GOSWAMI. chairman 
of the Indian Tea Board, has 
warned that because of a 
drought in some tea-producing 
countries, especially Sri Lanka, 
and rather indifferent weather 
conditions prevailing both in 
north and south India, Indian 
tea supplies to the world market 
may decline during 1982. 

Mr Goswami expects prices 
to improve steadily during the 
year. Tea prices have firmed 
during recent Calcutta auctions. 
Tea output during 1981 is now 
estimated at 5G0m kilos com- 
pared with 575m kilos in 1980. 

The decline was mainly due 
to ' climatic factors bnt the 
industry's inability to provide 
fertilisers in adequate quanti- 
ties has also contributed to the 
production fall, according to the 
chairman of the Indian tea 
association. Mr V. P. Maithel. 

Financial difficulties resulting 
from lower prices and the 
reluctance of commercial banks 
to proride adequate credit could 
well be a big constraint on pro- 
duction during the current 
year. r ; 


INDONESIAN EXPORTS 



changes hit earnings 


BY RICHARD COWPER IN JAKARTA 


STRINGENT -government ex- 
port restrictions, together with 
poor prices caused Indonesia’s 
commodity export earnings to 
fall over 40 per cent m real 
terms in 1981. Export volume 
fared little better with all main 
commodities well down on last 
vear with the notable exception 
of non-oil minerals. 

In nominal terms foreign 
exchange receipts fell from 
S5 4bn in 1980 to around S3.fihn 
in 1981— a decline of 34 per 
cent But with inflation for the 
Tear estimated by the govern- 
ment at a conservative 7 per 
cent, the drop was over 40 per 
cent in real terms. . 

It was clearly a very depress- 
ing year for Indonesia, the 
world’s second largest producer 
of rubber, tin, palm oil and 
tropical hardwood, hut world- 
wide recession was only partly 
to blame. Indonesian govern- 
ment regulations designed to 
chance Indonesia’s 1 ratlin? pat- 
terns were an important cause 
of the decline. 

According to preliminary 
figures obtained from the Bank 
of Indonesia, earnings from 
logs, palm oil and shrimps 
declined by over 81.1 bn in 1981. 
accounting for over 60 per cent 
of the total decline in com- 
modity export earnings of 
S1.8bn. Tn all these three sectors 
stringent government regula- 
tions rather than weak demand 
and poor prices were mainly 
responsible for the decline in 
both export volume and earn- 
ings. 

The Bank of Indonesia figures 
showed exports or tropical logs 
— for nearly a decade the coun- 
try’s lop commodity export — 


fell arnund 50 per cent from 
S1.9hh in 1980 to an estimated 
$933m in 19SI. 

This was largely due to an 
estimated 4-1 per cent drop in 
export volume from 14m cubic 
metres in J980 to around &2m 
cubic metres in 1981 caused by 
a series of government regula- 
tions aimed at ultimately stop- 
ping lo^ exports altogether and 
turning Indonesia into ibe 
world's largest exporter oF ply- 
wood. This was the lowest level 
of Indonesian log exports since 
1970. 

In spire of cries of protest 
from timber concessionaire-' — 
over 100 of whom have gone 
bankrupt over ihe past two 
years — and considerable anxiety 
from log importers in Japan, 
Taiwan and Sreyth Korea, the 
Indonesian government has 
shown no signs of relaxing the 
restrictions. Some thought that 
the prospect of cuminuing 
balance of payments delieirs nf 
over SI bn a year would help 
persuade the government to 
allow an increase in log exports, 
but to nn avail. 

This year the goremmenr 
plans to reduce exports by a 
further 35 per cent to 4m cubic 
metres and aims to eliminate 
them altogether by 1985. From 
being the world's largest 
exporter of tropical hardwood 

logs for much of ihe 1970s 
Indonesia is now falling rapidly 
behind East Malaysia, which last 
year exported around 14 m 
cubic metres. 

Continuing government inter- 
vention together with growing 
domestic demand for conkinE 
oils alsa forced a big drop in 


palm oil and palm kernel 
exports last year. Preliminary 
figures from the Bank of 
Indonesia show palm oil and 
kernel export earnings fell an 
astonishing 65 peT pent in value 
from 5224m Jn 19SG to an 
estimated $7Sra in 1981. The 
government's policy of substitut- 
ing palm oil for coconut oil in 
cooking saw export volume 
decline from around 434,000 
tonnes in 1930 to on estimated 
150,000 tonnes in 1981, accord- 
ing to the bank. It was the 
lowest level of palm oil exports 
for more than a decade. 

Export earnings for rubber— 
Indonesia’s second largest com- 
modity export — fell an esti- 
mated 20 per cent from Sl.lhn 
in 1980 to an estimated $SR9ro 
fn 39SI. Export volume was 
down less than 10 per cent on 
last year’s total or 977,000 
tonnes, according to the Bank 

of Indonesia, and the fall was 
equally due to Ihe decline in 
rubber prices over the year. 
The average monthly price for 
RSS — No. 2 in New York, for 
example, was around 69 cents 
per pound in 19R0. but fell 26 
per cent to around 51 cents per 
pound in 19S1. A number of 
rubber experts arc puzzled at 
the way export volume held up 
during’ the year following 
reports in the autumn that 
manv smallholders were cutting 
production bv 5fl per cent. 
Indonesia did however maintain 
its position as the world’s 
second largest producer and 
exporter nf na nival rubber next 
to its South East Asia neigh- 
bour Malaysia. 

Coffee— until recently one or 
the bright .spots on the Indon- 


esian comraodi ty scene— had Its 
worst season for four years, 
partly because of a savage cut 
In Indonesia’s export quotas by 
the International Coffee Organi- 
sation. According to the Bank 
of Indonesia, coffee export earn- 
ings fell by over 40 per cent 
from $655 m in 1980 to an esti- 
mated $372m in 19S1. The bank 
estimates that export volume 
was down around 12 per cent 
to an estimated 210.000 tonnes 
in 1981. 

The worst is yet to coroe. 
however. Coffee experts say 
that coffee stocks are likely to 
reach around 160.000 tonnes by 
The end of the 1982-83 season— 
enulvalent to over 50 per cent 
of Indonesian annual production 
and coffee growers are now 
beginning to talk of switching 
to other crops. Indonesia last 
vear maintained its position as 
Thp world’s largest exporter of 
rnbusia and the world’s fourth 
lar^iKf exporter and producer 
of coffee. 

As with last year the onlv 
sector which did reasonably well 
was minerals, and even here 
there was a decline in export 
earnings of around 9 per cent 
from S7S0m in 1980 to an esli- 
ntmefl $71 5m in 19R1. 

Tin. which had what could bo 
railed a hoom second half 
i hanks to the intervention on 
the world market of a mystery 
biiver, still foil S per cent in 
value from S461m to an esti- 
m.UPfl $42Hm. with volume mar- 
ginally up on lasi year’s 31m 
tonnes. Indonesia moved up 
into second place behind 
M-ilaysia. the world's largest tin 
exporter. 


ie 

at 


UK to aid banana growers 


BY HUGH CSHAUGHNfiSSY 

BRITAIN is sending an emer- 
gency package of fertilisers and 
fungicides worth flm to 
Dominica, St Lucia and St 
Vincent, and the Grenadines, 
whose governments fear the 
imminent collapse of their 
banana industry. The industry, 
set up after World War II at 
the instance of the British 
government, has been recently 
hard hit by droughts and other 
natural disasters and by the 
lack of foreign exchange for 
imports of essential agricul- 
tural items. 

The British decision was 
made last week after the visit 
to London or Miss Eugenia 
Charles, Prime Minister of 


Dominica, and Mr Vincent 
Bcache, trade and agriculture 
minister of St Vincent and the 
Grenadines. They represented 
the governments of St Lucia 
and Grenada as well as their 
own. 

The British government, 
adhering to its policy of putting 
financial pressure on ihe left 
wing government in Grenada, 
is not including that island in 
the present emergency pack- 
age. 

In the past the four islands 
have supplied more than 40 
per cent of British banana 
imports. The banana industry is 
crucial to the economy of the 
islands where it earns SO per 


cent of all revenues from agri- 
cultural exports 

Britain will he studying a 
report on the industry, 
expected to be presented to the 
Overseas Development Admini- 
stration in London shortly, 
before deciding whether ro 
pledge more aid. 

Meanwhile the leaders of 
various island governments are 
expected to see President 
Reagan when he visits Barbados 
at Easter. They will attempt to 
persuade him that their 
economies should have greater 
access to the $350 m aid pack- 
age for the Caribbean and 
Central America which he 
announced last month. 


Russia to buy 
Philippines 
coconut oil 

By Emilia Tagaza in Manila 

THE SOVIET UNION is buy- 
ing 29.000 tonnes of coconut 
oil from the Philippines for 
deliver?' in June and 
September, the Philippine 
Coconut Authority (PC A), 
Mr Rolando de la Cuesta, 
PCA chairman, said that the 
sales contract calls for the 
delivery of 20,000 tonnes in 
June at $495 per tonne or 
22.45 cents a pound. The re- 
maining 9,000 tonnes, quoted 
at $510 per tonne, will be 
shipped in September. 


BRITISH COMMODITY MARKETS 

BASE METALS 


AMERICAN MARKETS 


COPPER MOVED AHEAD on the London 
Metal Exchange boosted by .rumour* of 
?n impending annoui'eoment- from" a 
tending U.S. producer, regarding it* 
pncuig structure; three month* Conner 
touched £067 before rinsing ai £865. 
Tin. three mamba, ’ dipped tn C7.560 nn 
hetiffa setting but rallied on influential 
buying to rinse sr £7,400. General sell- 
ing depressed Zinc to £*56 wlnie Lead 
dosed at £357. Aluminium at f£00.75 
end Nickel at £3,207.5. 


55.00, 35.50. 98.00. Kerb: Three months 
E2S6.00. 55.50, Afternoon: Cash £353.00. 
52 00. three months £365.00, 56.00. 
Kerb: ‘Three months £356.00. 97.00. 
57.50. Turnover: .T3.825 tonnes. 

. -- R m _ +"or "p.m. — or 
TIN ■ Official - Unofficial — 


£ 

!— 58 


1 — s® 


; n.m. :+- or| p.m. :+or 
COPPER I Official I — ; Unofficial - 


HlghGrdej- 


i £ 


l £ 


Cash ; 834.5-5 +9.5 835.5 +6.75 

3 mth*. 861.5-2 +8.35. 865 .5 +7 

Settlem’t 1 835 i-BJ - 

Cathodes i 

Cosh- . B5X-3 !+fl,t 835 4 +7 

3 months 659-60 +10.3 85B 60 +7 

Settlem't 833 +10 - 

Prod. . - - *72.5-77 .... 

Am>lgonv>ied Moral Trading reported 
Hiat m tne monumj cash Higher Grade 
Traded at £035.00. three months £864 00, 
63.50. 63.00. 62.00. 63.00. 62.50, 62.00. 
Cathodes, three months £860.00. Kexb: 
Hiqhaf Grade; Threa months £882.00. 
Afternoon: Higher Grade: three months 
£863.00. 63.50. 64.00, 63^0, 63.00, 64.00. 
63.50. Kerb: Higher Grade: three months 
£883.00. 63.50, 64.00. 65.00, 66.00. Turn- 
over: 16,100 tonnes. 


High-Grade £ £ 

Cush 7175-85 25 7810 80 

3 months 7365-70 +3SJ 7370-5 
Sottl ain't 7185 -S5 - — 

Standard 

Cash 7175-83 — 25 • 7210-80. 

5 months 7365 -70 , 7370-5 

Settlem't 1185 -25 — | 

Straits E. J 530.37 +0.02 — 

NewYorK ' — — — — 1 

Tin— Morning: Standard, cash £7.180. 
throe months £7.420, 10, 7.400. 7.380, 
85. 80. 60. 65. 70. Kerb: Standard: 
Thro* months £7.360. 50. 56. Altemoon: 
Standard: Cash E7.22y 10, three month* 
£7.333. S3. 60. 70, 80. 85.-80, 70. Kerb: 
Standard: three months £7.370. 80, 90. 
7,400. Turnover: 2.215 tonnes. 

Aluminm ajh. + or p.m. +or 

. Official — Unofficial — 


. 58.00. 57.00. 56.00 Korb: Three months 
£4-56.50. Kerb: Three months C35S.M. 

57.00. 57.50 Afternoon: Cash £450.00. 
three • months £436 00. 53-00. Kerb:. 
Throe months £452.00. 53.00. 53.50. 

64.00. 55.00. Turnover: 12.925 ton nes. 

NICKEL 1 a-m. i+or 1 p.m.' |+ or 
| Official : — Unofficial 1 — 


Spot—.... 3195 200+18.5 319D-200 +37.5 
3 months 3206-7 +18 3206-10 +4B.B 

Metal Morning: ' Gash 13.200; three 
months £3,220. 10. 05. Kerb: Three 
months £3.210, 05. • Afternoon : Three 
months £3.210, 05, 3.200. Kerb: Three 
months £3.210. 15. ‘ Turnover: 630 1 
tonnes. 

* Cents per pound. $ MS per kilo, 
t On previous unofficial close. 


ties, parvcuisrly those grown in various 
Air’can countries and in South America. 
Operations in Middle cistern styles 
were far Irom inconsiderable. 

GAS OIL FUTURES 

Prices strength erred during ihe morn- 
ing on 3 steadier physicel market, 
but later eased ott on news ol better 
supply and a weaker New York 
market, reports Premier Man. 


SILVER 


i a.in. + orf p/m. . .+ o r 
LEAD Official , - : Unofficial: — 

. £ £ , £ £ 

Cash 35B.S.3.6 +4.6' 351-2 - + 2 

3 months 365.6-6 + 5 1 356-.S +3.78 

Settlem't 353.5 -+4J- — : — 

UjS. Spot _ t_ _ ■ — *27-32 ...... 

Lend— Morning: Cash £352 00, 54.00, 
53.00, dines month* £365-00. 54.00, 


£ £ . . « * 
Spot . . .. 576.5-7.5 +5.25 S78-.5 +5.75 
3 months 599 .5 + 3.B 60C-.B +4 

Aluminium— Morning: Three months 
£601.00, 600.00, 599.00, 98.00. 99-50. 
Kerb: Three months £599.50. 99.00. 
Afternoon: Three months B5Q0.00. Kerb: 
Three months' £800.50. 600.00, 600.60. 
Turnover: 8,625 tonnes. 


Silver was fixed lOp an ounce Higher 
for spot delivery in the London bullion 
market yeterday at 3S5.6p. U.S. cent 
equivalents of the fixing levels wore: 
soot 7I5c. up 13c:- three-month 740.Cc. 
up 20.1c: six-month 785.7c. up 21.6c: 
and 12-month 818.7c, up 21.3c. The 
metal opened « 393-2S7p (713-716c) 
and closed at 397-401 p (71S-723e). 


Month 


March .... 

April 

May- 

June 

July- 

August ... 

Sept 

OCL 

Nov. 

Sales: 

tonnes. 


’ .Yesf 'day'a + or Bud ness 
close • — : Done 

1 . S U.S. i 

per tonne 

.. 264.50 -rO.Sfl 268.0D-Bt.00 
.. 247.50 -3.M2S2.7M7J25 
.. 236.00 —2.50 2H0.M-S5.OO 

.. 233.00 — 3 .SO 247.50- W. DO 

.. 235.50 -3.3C 259.50-45.00 
.. 239.25 -4.25 244JW -58.00 

.. 244.00 — 5.30 240044.00 
.. 246.00 -2.50S49.lM4i.00 

.. 251.00_ - 4.00 _ — 

2.235 (2.817) lore ol 100 


AU 4 425. 427. 425; Oct 426. 438. 
423-426: Dec 426. 428. 425: flan 420. 
428. 428: Match 436, 436. 438-425: May 
442. 445. 444: Aug 452. 454. 455-452. 
Sjles: 20. 

SYDNEY GREASY WOOL — Close (m 
order: buyer,- setter, business). Aust- 
ralian cents per kg. March 528.0. 529 5, 
529.0-525.0; May 527 5. 52B.0. 527.5- 
524.0: July 530.5. 531.0. 530 6-528.5: 
Ocr 521.0, 522.5. 522 5-521.0; Dec 526 0. 
527.0. 525.5-23.5; March 534,0. 535.0. 
535.0 533.0: May 539.0. 540.0. 539.0- 
5363: July 543.5, 544.0, 544.0-541.0. 
Sri®*: 296. 

SOYABEAN MEAL 

The maiket opened with gems of 
C1.00-C1.50 on renewed comm.s'mn 
house buying, repoiis T. 6. Rodd ck. 
Profit- la king developed at higher levels 
but commercial buy.ng kept prices 
s ready. 

’ YeiterdyiT+ or BusinewT 
■ Close — : Done 


PRICE CHANGES 

tn tonnes unless otherwise stated. 







. Mar. 16 

+ or! 

[ Month 


1 1982 


ago 


Matas 

Aluminium 

Free MkL 

Copper.- 

Cash It grade.. 

3 mths.,.. 

Cash Cathode.. 

3 mthE 

Gold troy oz ... 

Lead Cash 

3 mths. 

Nickel 

Free mkt 


*810/815 PaiO'BIS 

>10£5r1Mk 8IW31D76 


£855.25 

£853.25 

£833.5 

£859.5 

9323 

£351.5 

£356.25 

£3824 

265 /293c 


GRAINS 


SILVER 

Bullion 

i : * 

j+ or, L.M.E. '+ or 

per 

fixing 

I — I P-m. ■ — 

troy-os. 

price 

l 1 UnottieT- 

1 ; 


ZINC J 

a.m.‘ ,+ 6?' p-m. 
Official ; — Unofficial, 

4-or 


fi 1 £ 1 ^ 1 

£ 

Cash ! 

451-3 '-!L7S| 448-8’ 1 

-I 

3. month* 

455-6 -1.75' 453-4 « 

i-fi 

S'ment..., 

453 — 2 1 — 


Primw't*! 

— i •W-41.7B 1 



Zinc Mo rning: Threa -ra crofts £489.00. 


Spot t395.6Qp -j+IOJt 399 p +12.3 

3 months.l407.85p 1+19.4' 4X1.75p +7.4 
6 monttts.4rlB.70p j+IO.B- — ...... 

12 month* 445. 9 5p^ 1+10.8.' +- 

LME— Turnover 70 1 100] 'tore “of 

10.000 ozs. Morning: Cash 396.0; three 
months 4094). 06.S, 06.0. 08 5. 08.1. 
-Kerb: Three months 408.5. Altemoon: 
Three months 410.5, 11.0. 10.9.' 11.0. 
11.5, 11.7. 12.0. Kerb: There month* 
412.0, 13.0. 4.0. 


Commodity 

Analysis 

Limited 


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BROKERS 
Specialists In 
lommodity and Currency 
Discretionary Accounts 
Minimum account size 
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Contact 

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lommodity Analysis Limited 
37/39 St Andrews Hill 
London EC4 
Tel: 01-236 5211 



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IT CAN LEAD TO 
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DAMAGE 

particularly to the eyes, 
kidneys and limbs 

DIABETES 
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THE BRITISH 
DIABETES 
ASSOCIATION 
10 Queen Anne Street, 
Loudon. WIM OBD 


CLUBS 


COCOA 


Futures initially eased on modest 
Mies from French shippers, but prices 
later moved limit down as commis- 
sion houses sold following reports 
that the buffer stock manager had 
rotated '5.000 tonnet of spot cocoa. 
Consumer interest, however, wes 
scarce in spite ol the lower levels, 
repo rt* GIU and - Duffus. 

YWruay si + or I Business 
COCOA | Close i — J Done 


March 

1185-37 

May..J. 

1108-09 


1131 52 

Sapt 

1150-51 

Dec 

1172-73 

March ...... 

1188- BO 

May 

1200-10 


Sales: 6.543 (1.507) lots ot KU 
tonnes. 

ICCOr— Duly price fob March 15: 
92.58. {33.02). Indicator price for 
March 16: 93.40 (33.70). 


COFFEE 


EVE has outthred the others because of a 
eolkv of fil r plav and Min* tor money. 
Supper warn 10*3.30 *m- PjH» 
musicians, glamorous hoaeesies. excjwne 
aeortlMOT. 1 SB. Reoent St. 734 0557. 


PLANT AND MACHINERY 


WANTED 


DIRECTOR OF A GROUP FROM EAST IS INTERESTED IN 
s.-asa- SECONDHAND PLANT OF ANY TYPE _ 
AGAINST CASH, QUICK DECISION 
AKHTAR, 

7 Wynnitsjr Grove, Falfowfield, Manchester 14. 


A lower opening reflected - further 
new selling pressure on a tired 
robust* market, reports Drexel Burnham 
Lambert. Keen buying from -one 
source kept prices relatively steady 
near the lows, si though renewed 
selling on the dose contributed' to e 
weaker finish. 

~ ~ ^[Yesterday's ”, : “ 

- COFFEE . Close H- or Business ‘ 


The market opened unchanged and 
both wheat and barley traded ea&.er. 
He3vy hedge selling ensued with May 
receiving most attention. New crops 
reacted in sympathy. Acli reports. 

WHEAT BARLEY 

Yesterd’ys +or Yest'rd'ys +or 
Mnth close — ' close — 

Mar- 113.10 — O«£0 107.55 — 0J9 

May- 116.10 -0.44 110.66 -0.60 

July- 119.40 -0.85 - - 

Sept. 106.65 ; — 0.05 102.30 -O.lfi 

Nov... 110.15 -0JK> 106.10 -0.10 

Jan... 113.95 -0J5 109.85 -0.10 

Business done— Wheat: March 113. 25-. 
tTS.IO. May 116.40- 116. 10. July 120.00. 
119.40. Sep: 106 70 only. Nov 110 JO- 
110.15. Jan 114.00-113.95. Sales: 134 
lots of 103 tonnes. Barley: March 
107.75-107.53, May 110.85-110.50. Sept 
102.45-102.35, Nov 106.20-106.10, Jan 
110.00-109.63. Sales: 75 lore ot ICO 
tonnes. 

LONDON GRAINS— U.S. Dark Nor*. 
ern Spr-ng No. 1. 14 per cent: April 
118.75. May 111.75. June 111.50 tran- 
shipment East Coast. English Feed, 
lob: May 120.00 paid South Coast. 
Maize: South African White/ Yellow: 
Apnl/May 79. Barley: Engbsh Feed, 
lob: Aug 104.50 pa.d South Coast. 
Rest unquoied. 

HGCA — Lorjt'anal ex-farm spot 
pr.ces- Feed barley: S. East 107.00. 
S. West 108.C0. W. Mids 106.10. N. 
Wear 5C3.30 The UK Monetary Co- 
efficient lor tire week beginning Mon- 
day March 22 (b-sed on HGCA calcu- 
lations using five days' exchange 
rams) is expected to domain un- 
changed. 

RUBBER 

The London physical market opened 
about unchanged, attracted little 
interest throughout the dnv and 
dosed quiet. Lewis and Peel re- 
corded an Apnl fob pTic* lor No. 1 RSS 
in Kuata Lumpur of 204.0 (304.5) cams 
a kg and SMR 20 181.0 (181.5). 


No. 3 YestT'ys Previous Business 
R.S.S. close close Done 


i . — 7 Done' 

bC per tonne. I 


Maroh-....J 1470-75 +10 14B4-43 
1278,79 —23 <1296- 76 

July.- 7J 1203-05 -19 1218 01 

sept. 117172. — 19.51295-72 

Nov 1 1147-55 -57 1186-55 

January—.. i 1145-48 -38.5 117548 
March...,...., 1130-40 -45 1163-52 

Salas: 5.723 (4.079) lots of 5 tonnes. 

ICO Ineffcter prices for March 15: 
(U.5. cants par pound): Comp, daily 
1979 132. S3 (134.31): 15-day ararsse 
134.67 (134.79). • ■ 

COTTON 

LIVERPOOL — Spot »nd shtpmems 
sales amounted to 190 More 

interest was displayed m cenfcft guali- 


April ... SU0-S1.M SD.15-M.90 — 

May S1.-:4-52.M 51.4D6l.Bfl - 

Apl.Jne 51 M 31.70 51.40-S1.M 5130-51.40 
JW-Sept 55.10 55.M 55.40-55.50 55.5OJH.T0 
olt-06c 5030 M-9a 5B JB-5BJ0. 57.10-56 JO 
Jan-Mar 58.80 M.30 58.Of.50J0 58.IC.5S.fiO 
ADl-Jne 6i.M-61.50 EO.SO-Gt.SO 81.50 
Jty-sept 62.B0.E3JU 65.3O.03.S0 

Oct-Dec 65.10-65^0 54-00-63.00 63.W-65.UI 

Soles: 197 (383) lots of 15 tonnes, 
nil (name) lats of 5 tonnes. 

Physical clos-'ng prices: (buyers) 
were: Spot 4S.50p (same): April 
6l.2Sp (51-50pJ: May 51J5p (51.50p). 

WOOL FUTURES 

LONDON NEW ZEALAND CROSS- 
BREDS — C osh ( n order buyer, seller, 
business)- New Zealand cents per kg. 
Marco 383, 4C3. ml: May. 40S, 410, 407: 


: £ i 

per tonne 

April 150.e0-51J2 + 1.90 131.00-50.70 

June. I2d.0il-'.'G.< * 1.50 Ia9.2d-:d.OO 

August 1W.-;o:S./ +1.B5 129.70-49.00 

October. l4U.2U-£0.» + 1.60 150.5B-».50 

Dec 135.10-54.5 t 1.46 155.L*0-aiJ}0 

FeU • 139.50-4A0 + 1.5(1 - 

April 135.00-40.0 + 1.75 — _ 

Sales: 196 ( 57 ) lots of ID tonnes, 

SUGAR 

LONDON DAILY PRICE— Flaw auger 
£148.00 (£145 00) a tonne cif March- 
April-May shipment. "White sugar daily 
price £163 00 (£160.00). 

The markai opened £1.00 higher but 
eased later. The lows were short-1 ved 
and most of the losses were recovered 
by the close, repons C. C:a rmkow. 

No. 4 Yesterday Previous I Business 
Ccn- - close - close done 
tract ! , : 

£ per tonne 

May.. 154, 15- 54 ,29 151.&0-31.50 155.51 61.50 

4ug ltfl^>5B.55 I65Jfl-5uJfl la9.ifl-i5.Vi 

Oct 16i.a0-B5.45 159.75.55.60 165^0-59.76 

Jan 153,25 04.50 101.00-52.56 — 

March 1G3.V5-70.W Ifi6.75-fc8.95 170 J5-E7.00 

May 1V2.7&-7S.25 1C9.SB-70.25 174.75 

Aug—. 174.00-77.00 172.7573.50 
Sales: 2.833 (4.134) late ol 90 

tonnes. 

Tate and Lyle delivery price for 
granulated basis whits sugar was 
£274.00 (same) a tonns fob lor home 
trade and £256.50 (CG3.50) for export. 

International Sugar Agreement lU.S. 
cents par pound) fob and stowed 
Caribbean parts. Prices tor March 15: 
Daily price 10.66 (1039]: Id-day 

average 11.80 (1134). 

POTATOES 

LONDON POTATO FUTURES— After 
Initially falling to Ihe low, April found 
new buying support. Nov and Feb 
found conwttjcil support, although on 
relatively email turnover. rapnrtE Culler 
and Harper. Cfioeing prices: Apr 127. W. 
+0.10 (high 128.50, low 13S.00): Nov 
68.00, +0.50 (high 63.00, low CS.50); 
Feb 79.90, +0,60 (high 79.50. low 

79.30). Turnover: 791 (1,070) lots of 
40 tonnes. 

* 

GRIMSBY FISH— Supply poor, de- 
mand good. Pries* at ship 1 * Sid* 
(unprocessed) per clone; Shell cod 
C6.09-CS.70. codlings. C3.50-C4.50. Large 
haddock £4.60, medium [4.80-0^0, 
small C3.20-C4.00. Best small plaice 
C3.S0-C4.70. Lemon sole*, large, £15.50; 
medium, £13.50. Rockfish E3.50. SSilhe 

MEAT/VEGETABLES 

SMITHFIELD— Pence per pound. Beet: 
Scorch Killed Sides 64.5 to 88.0; Ulster 
hindquarters 96.6 to 99.0, forequarters 
G4.0-ES.5. Vesl: Dutch hinds and ends 

121.0 to 128.0. Lamb — fnqfish rmafi 
64.5 to Sl.O. medium 84.0 to 90.0. 
heavy 80.0 to 64 0; Scotch heavy 80 O 
to 84.0. Imported: New Zealand PL 

66.0 to 67.0, PM. 65 5-67.0, YU 64.5- 
65.0. Pork: English, under 100 Iba 45.6 
to 56.0, 100-120 lb 44.5 U 5S.5, 120- 
ISO lb 43.0 to 52.0. 

MEAT COMMI S S I O P+— A v s rage Fat- 
itack puces et representative market*. 


+ 6.75 £368.25 
+ 7 £693 J5 

t 7 £663 

+7 £689.3 

+9.5 8373,5 
+ 2 £333.75 

+3.75 £344.25 

£5771.7 

-2 .265/950 

£260 

+ 5.9 £199.50 

639* 405 

tIO 40-7.45p 
+ 10.45 483.1 bp 
-50 £«960 
-25 £7907.5 
5125.64 

-1 S125'129 

— 6 £447 

-5 £453.5 

8876/968 


Platln’mtr 02 'y £260 

Fracmkt £172.40 

Quicksilver? ... 5390.400 
Silver 11 oy oz... 595.60,, 

3 mths. 40?.&bf, 

Tin Cash £7215 

5 niifra £7372.5 

Tungsten^.O lb 6130.00 

Wolfrm 82.41056 Si 14 <11 7 

Zinc Cash- *448.5 

5 mtilB £455.5 ■ 

Producer*. 3900 i 

Off* I • f 

Coconut (PhID S477.&Z +2.5 *532.6 

Groundnut 6635 ; S672.5 

Linseed Crude : X 

Palm Malayan S5Q2.5v i ,S5aO 

.Seeds 1 I 

Copra Ph Up „ *330z 1+5 .8550 

Soyabean lU.S./ a260v i+4 6257 

Grains 1 ; 1 

barley Fut-May,£ 1 10.63 -0.3 :£110.15 

Maize t £133.50 

Wheat FutMay, £116.10 -0.4 £114.65 
No.2HardWlnt; ; l£116.50 

Other * ! | 

commodities 

Cocoa shlp't- £1134 -43 l£1202 

Future May £1108.5 -43 £1166.5 
Coffee Ff May £1276.5 .-25 £133S.6 
Coctoh Attndex 70.35c —0.05.69.90c 

Gas Oil Apr. .._iS247.7 |— 3.6 3273 

Rubber 'Ktto/.../ 4 a.ip ( 4o£Sp 

Sugar (Raw:... i£148z +5 i£173 

Woo It' pa 54s W.]i8Sp Kilo] |3B7p|t|]o 

t Unquoted, v April, z March -April, 
x May. y April-May. u Msy-Juna. t Par 
76 lb flsab. * Ghana cocoa, n Nominal. 
6 Sailer. 


GB — Cattle 101.40p per kg hw (-1.02). 
UK — Sheep 213. 75p per kg eat dew 
(4-4.56). GB — Pige 7S.90p par kg Iw 
(+037). 

COVENT GARDEN— Prices tor the bulk 
of produce, in starling per package 
except vriisre otherwise stated. Im- 
ported Produce: Oranges — Spania: 
Navels 43/120 4.60-5.50; Cypriot: Valen- 
cia tolas 4.00; Jaffa: Shamauti CO.'ICS 
4 97-5.69; Mo race jn: Navels 43 '11 3 3.60- 
5.(0. Mandoree— Cypriot: 52/72 5.C0- 

7.00. Mandarins — Spin* a: 4 00-4.80, 

Karas 4.40.5.00. Lemons — Cypriot: 2.50- 
3.00; Spares: 40/50 1.60-2.00; Italian: 
60/120 4.00-5.00; Jaffa: 1(6 4.30; U.S. I 
6 00. Grapefruit— U.5.; Texas Ruhy 
6.50-7.03, Florida Ruby 8.00-6.50; 
CypnoU Large cartons 2.20-4 00. email 
cartons 2.50-3.20; Jaffa: 36/86 3.50- 
4.90: M q rc.cc in; 40/64 2.00-2.50. 

Ortanlquee — Jamaican: 64/125 8.50- 

9.00. Apples— French; New crop: Golden 
Delicious 20 lb 3.00-3.00. 40 lb G.OO- 

6 03, Stark Crimson 40 lb 7.(0-960. 
20 lb 3.40-4.89. Granny Simi* S.M- 
10.59; Canadian: Red Delicioua 8.50- 
12 03: U S.: Red DBlirioua 10.03-14.90: 
S. African: Dunns 11.00-11.50. Pears — 
Dutch: ComiCB U lb. par tray 4 DO: S. 
African: Williams' Bon Chretien 5 20- 

7 00, Buerre Hardy 5.50-6.50; Italian: 
par pound PassacratsSna 0.14-0.16. 
Nectarines — Chilean; 8.50-9.00; S. 
African: 4.20-5 00. Plum* — S. African: 
per pautui Song rid 0.30-0.50, Golden 
Kuig 0.354) 50. Grape* — Chilean: 

English Produce: Potatoes— Per 55 lb. 
White 3.00-3 50. Red 3.30-4.00. King 
Edwards 3 40-4.20. Mushrooms — Par lb. 
open 0 50-0.60. closed 0.60-0.80' Apples 
—Per lb, Bramley 0.2£L0.30. Cox's 0.25- 
0 40. Pure— Per lb Conference 0.14- 
0-22. Cabbages— Per 30 lb bag. Celtic/ 
Jan King 2.00-3.50. Lettuce— Per 12, 


NEW YORK. March IB. 

COPPER WAS mcaUy steady to lower 
on active commission house buying 
based on anticipation of mme produc- 
tion cuts. Cocoa collapsed on heavy 
celling prompted by reported swaps of 
near-term holdings hy the buffer stock 
manjgar. Heating oil was moderately 
lower ac the trade had lulls confidence 
in the stability ol crude oil puces. 

Cotton sold alt as moisture supplies 
Improved in the U.S. growing areas. 

Soyabeans declined as Brazilian grow- 
ing areas received additional moisture, 
reported Heinold. 

Copper— March 67.45 (67. ED), April 
67.90 (£8.05). May £3.30-68 95, July 
70-50-70.70. Sept 72.30. Dec 74.80-74.90. 

Jan 75.55. March 77.05. May 78.70. July 
80 20. Sapt 61.90, Dec B4.20, Jan 85.00. 

•Gold— March 212.8 (324.2), April 
314.0-315.0 (226.2). May 319.0. June 
320 5-322.0. Aug 227.0. Oct 226.1, Dec 
343.6, Fab 551.5, April 259.6. June 
237.9, Aug 376 2, Ocr C2J.7. Dec 293 3. 

•Platinum— April 302.0-202.5 ( 313 8). 

July 209.0-210.0 ( 32Q.3), Oct 315.5. Jan 
226.0. April 326.5. 

PatatoBB (round whites)— Agril 7B.S 
(BO 2). Nov 77.0 (75.3), M?rch £3 D. 

^Silver — March 704.0 (72001. April 
707.5 (734.01. May 7T5.0- 717.0. July 
7?? .0-725.0. Sept 753.0. Dec 77B.0. Jan 
726 5. March En2.5, May E20 5. July 
827 5. Sept 854.5. Dec BSO.O. Jan B°5 5. 

Handy and Harman bullion spot: 72VOO 
(£97.00). 

Tin— £08.00-010 00 f 810.09-813.00). 

CHICAGO. Mitch 16. ■ 

Lard— Chicago loose 19.25 (19.50). 

Live Cattle— Ao til GE.65-66.E0 (GG 321. 

June 64.45-64.25 (64.35), Aim 62.05- 

62.10. Oct 69 10-E0.20, Dec 60.K-EQ.45, 

Feb 60.20, April 60.55. 

Monday’s closing prices 

ttCocc*— Mar 1944 (1945). May 1928 
OB45). July 1963. Sept 2010. Dae 2045, 

Mar 207a. Sales: 1,678. 

Coffaa — “C" Contract: Mar 153.55- 
153 S3 f16£.5ri). May 139 PI f143 P.3). 

July 121.20-121 50. Sept 127.75-123.00. 

Pec 1?3 5%1?4«. Mar 122.09-132.01 
May 118.00-122.00. July 117.00-123 00. 

Sales: 3.530. 

Cotton— No. 2: Miv B 53-E5.65 
(£4 851, July 67.55-67.59 (66 72). Oct 

70.10. Dec 70.97-71.10, Mar 72 83. Mav 

EUROPEAN MARKETS 

ROTTERDAM. March 16. 


Live Hooa— April 50.10-50 00 (50.06). . 
June 52 25-53.50 (53 651, July 54.00- , 
04.10. Aug 53.15-53.12. Oct 50.S-50.22. 
Dec 51.03-50.90. Feb 50.25. June 49.00. 

ttMaiza — March 257 1 ! (lama). May 
7r>7-2G7 J - (2G7 1 i). July 275V275*., Sept 
Z7?.\-27Bh. Dec 283V 233, March 299V 
Pork Bellies — March 71.25-71.60 
(72.57), May 71.50-71 .65 (72.82), July 
71 50-71 33. Aug B9.55-69.50. Feb 69 00- 
68.80. March 70.40. May 71.60, July 
72X0. 

tSoyabeans— March 60 6>i (616), May i 
619-6174 (627*1). July 62BV628, Aug I 
632-622*3. Sepr 632»j. Nov 636*3-837. 
Jan 059. March 66*. May 677. 

IlSoyebaan Meal— March 180.5 (182 0), 
May 182 0-182.3 (183.9). July 165.0- 
185.2, Aug 186.5, Sept 187.0-187.5. Oct 
1 87.5-188. D. Dec 190.0. J3n 191.0-191.5. \ 
Soyabean Oil— Match 18.06 (18.33). 
Mav 13 47-13 46 (18 77). July 18.95- 
18 h7. Aug 1915-19 17. Sept 19,38- 
19.49 Ort 19 55. Dec 19.85, Jan 20.00. 
Mjwh 21 47-20 59. 

t Wheat— March 345 (342^). May 353- 
?*■"* 125?%), July 353*4-363*,. Sept 
S7C*i-377. D-c 294» 4 -394 , r , March 408* z . 

WINNIPEG. March 16. 
SBariey— March 119.70 bid (119.20). 
May 123 29 (122 20), July 126 00. Oct 
127 70. Dec 129.00. 

5 Wheat — SCWRS -13 5 per cent pro- 
tein content oif St. Lawrence 221.34 
(222.14) 

All cents per pound ex-warehouse 
unless otherwise stated. • 5 per troy 
ounce. 4 Cants per troy ounce 
41 Cents per 56-lb bushel, t Cents 
per CO-lh bushel. ]) 5 per short ton 
f’.FOO lb). $ SCan. per metric ton. 

per 1.000 sq It. 4 Cents per 
dozen.' ft S per metric ton. 


74 4 X74.50. July 75.40-75.50. Sales: 
7.700 

Orange Juice— Mar 119.2S-119.G0 
M1S.00). May 123.00-123.10 (121.851. 
July 120.10. Sept 128 30-128 GO. Nov 
120 10-120.50. Jan 132.30. Mar 133 90- 
T*4r»0, May 125 50-135.70. July 136.70- 
137 2n. Sa’es: 700. 

CHICAGO. March 15. 
Chicago 1mm Gold — Mar 324 4 

(219 1 ). June 233.5-232.5 (326.8), Sent 
345 3. Dec 355.7. Mar 367.5, Juno 
279.B. Sept 292.0. 


Whew— (U.S. S per ronne): U.S. 
Nd. 2 Dark Hard Winter. 13 5 per cent 
March 20/Aprif 15 20flc. U.S. Na. 2 
Red Winter; March/April 5 103. 50. April 
167. 33. U.S. No. 3 Amber Durum-. 
April -May 1S2, June 152. July 133. 
U.S. No. 2 Northern Soring, 14 per 
cent: Aprll/Mry 17 185, May 192. June 
1S3. July 182.50. Canadian Western 
Red Spring: Aprtt/lUlay up to Sept 202. 

Maize — (U.S. S par tonne): U S. No. 
3. Y+.llow: Spot 124. Match 132.50, Apr.l 
129.50. May 1233. Jnnu 128.50. July/ 
Sepr 129, Ou/Dec 130. Jan/March 123 
sellers. 

Soyabean*— f U.S. $ par tonne): U S. 
No.. 2 YeHow, GuJJporK; April ?5&, May 
256, June 255.50. July 256.50. Ant] 257, 
Sept 2S8, OH 252.59, Nov 259.50, Dec 


257 25 tellers. Argentine June/Jufy 252 
ael'ara 

Soya me aJ — (U S. S per tonne): 44 per 
coni protein unloading 233 traded, 
afloat 234 to 228 (depending on posi- 
tion). March 226. April 225.50. April/ 
Sept 225.50. Nov/Murch 237 sellers. 
Brazil PeHeis aflonf 237. March 235. 
Apr.l 235, May 234, Aprtt/Sepr 235 
sellers. 

PARIS. March 16 

Cocos— (FFr per 100 kilos); March 
1196-1220. Mav 1225-1228. July 1250- 
1275. Sepr 1280-1304. Dec 1315-1330. 
March 1335-1355. May 1250-1365. Sales 
*r call: 2. 

Sugar— (FFr per tonne): May 1603- 
1805. Jnly 1807-1622. Aun 1854-1860. 
Ocr 1825-1840, Nov 183-1840. Dec 
1825-18*0. March 1920-1930. May 1950- 
1970. Salas at call: nil. 


INDICES 

DOW JONES | 

FINANCIAL TIMES 

Dow . Mar. i Mar. 
Jones : 15 j 12 

Monthj Year 1 
ago j ago | 

245.28 ; 244.25 248.09 • 256.01 

soot 123.18 122.27 !l8B.Br — 
Futris 128.40 1127.63 il35.89 — 

(Baca: July 1,- 1952-100). 

(Average 1924-25-26-100) 

MOODY'S 

REUTERS 

Mar, 16 Mar. 12 Month ago Year ana 

Mar. 16 Mar. 15. M’nth ago Year ago 

966 7 &84.9J 100BJ*_ :U3l.3_ 

(December 31, 1931-100) 

1588.6 1580.5 _ 1621.9 : 1704.6 
(Base: September 18 , 1931-100) 


round 1.50-2.00. Onions — Per 55 lb 
40/80 mm 2.00-3.00. Carrots— Per 26/ 
28 ib 1 00-2.00. Beetroots— Per 28 lb. 
round 1.00-1.20, long 1.40-1.50. Swedes 
— Par net 0.90-1.00. Sprouts— Per 20 1b 
1.50-2.60. Rhubarb— Indoor, per lb. 
T4-lb box 0.16-0.18, outdoor 0.12-0.1*. 
Isrire— Per 10 Ib 1.20-1.50. Parsnips— 


Per 26/28 lb 1.00-1.40. Turnips— Par 
26/3J Ib 1.00-1.40. Cucumbers — per 
package 3. CO-6.00. Calabrese— Per 8 lb 
„ Gr88 ^— Pe* 33 Ib Cornish 8 00- 

n ^ ,b a 004.50. CauMiowm 

—Pet 16/2*. Cornish 5JB-B00. Kent 

q^" 4 ' 00, Tomato «* — Par Ib D/E 0A0- 


P&PIff SS *?S, 0 i'5ia«5r 9 &S S B S 5 : 3 ? 3 «? S B'Gf 




«WJW» 




; r —n rn r 1 imflfta 


30 


Companies and Markets 


LONDON STOCK EXCHANGE 


Gilt-edged turn easier on lack of fresh demand 
Drab day in equities and index eases 3.4 to 562.4 


Account Dealing Dates 
Option 

T First Declara- Last Accoonl 
Dealings tions Dealings Day 
Mar 1 Mar 11 Mar 12 Mar 22 
Marla Afar 23 Mar 26 Apr 5 
Mar 29 Apr 15 Apr 16 Apr 26 
■ "’Nnw tim# dealings may taka 
place front 3.30 am two business days 

earlier. 


Another Sour trading session 
in London equity markets saw 
■leading shares again drifting 
lower yesterday. British Funds 
also turned easier in a volume 
of business much reduced from 
levels prevailing since last Tues- 
day's budget. 

Investment confidence in the 
equity sectors was lacking 

aaainst a backdrop of wnrries 
about the U.S. economic situa* 
tinn and the fall in UK manu- 
facturing output to ite lowest 
since 1967. The previous day's 
liquidation of selected leading 
shares on behalf of an invest- 
ment trust was thought to have 
resulted in some lines of stock 
still overhanging the market, 
contributing to the dull trend. 

Initial falls in the equity 
leaders were usually fairly 
mndest, a reaction of 3.4 in the 
FT 30-share index at the 10.00 am 
calculation partly reflecting a 
loss of lfi in Hawker. A subse- 
quent rally in Hawker with occa- 
sional support for others at the 
lower levels reduced rhe index 
loss to 1.7 pt noon, but lack cf 
sustained support saw quotations 
drift back to leave the index 3.4 
down on balance at 562.4. 

Despite the paucity of busi- 
ness, equity features were fairly 
numerous. Huntley and Palmer 
and A. Holden weakened 


markedly on the referral of the 
respective .bids to the Monopolies 
Commission. Among the sectors, 
secondary Oils were enlivened by 
Tricentrol’s countered for CCP 
North Sea, hut Banks remained 
weak, sentiment still unsettled 
by the Chancellor’s tax threat. 

Gilt-edged securities ran out of 
steam after lie recent show of 
strength. Profit -taking in the 
index-linked stocks left quota- 
tions with falls ranging to a 
point. Mediums and longs went 
easier, njainly on a lack oF fresh 
support, but early losses ranging 
to around 1 were reduced to $ 'by 
the close- Short-dated issues 
finished similarly lower and the 
Government securities index 
shed 0.14 to 6S.33. 


Guinness Peat better 

Buying on recovery hopes In 
the wake of the expected poor 
interim results helped recently 
depressed Guinness Peat to rally 
10 to BSp, after 70p. Elsewhere, 
the threat of increased taxation 
continued to overshadow the 
major clearing hanks. Barclays, 
450 p, Lloyds, 440 p, and Nat West, 
430p, all fell 15 more hut Mid- 
land, which concludes the divi- 
dend season on Friday, finished 
only 4 cheaper at 326p. Insur- 
ances displayed no set trend 
after a moderate ■business. 
Royals hardened a couple of 
pence to 365p. but Eagle Star 
dipped 6 to 374p. Awaiting the 
results, Britannic finned 4 afresh 
to 2S4p. 

Leading Breweries drifted 
lower for want of attention. 
Arthur Guinness, which an- 
nounced «£ie sale of its Callard 
and Bowser Nuttall confectionery 



1 

! Mar. • Mar. ! 

i “ 1 » ! 

* 

Mar. 1 
11 1 

Mar. ' 
10 I 

Mar. 

B 

A 

year 

ago 


I 

Government Sacs...' 68.33; 68.47 

i 

68.30 

68.7l{ 

| 

66.73* 

68.08 

69.82 


FINANCIAL TIMES STOCK INDICES 


fifi.oa! 

562.4 1 
221.5 j 
6.63 : 

10.18' 

12.78 ! 

Total bargains 2 1,431 J 21,003 35,705i 23.02BJ 

Equity turnover £m.j — 1 122.32 ( 151.7aj 145. 

Equity bargains — 1 16,929' 19^30 18,57 


Fixed Interest..—.... 
Industrial Ord.— i 

Gold Mines —I 

Ord. Div. Yield .„! 

Earnings, Yld.S(full). 
PiE Ratio (neti [*)•_..' 


63.03; 

365.8 

211,5i 

6 . 66 * 

10.29 

ia.5a 


6B.98J 

566.S; 

aiB.6j 

5.64J 

10J36J 

12.55 


69.07- 
567X 
328. Oj 
5.6H 
10.24) 
13.57] 


67.94* 71.65 
560.8 487.6 


209.2 342.9 
5.6li 6.89 


69.02 
859.5 
219,8! 

5.64) 

10.3d 
12.40; 

22 , 022 ; 26,348 24,350 
169.od 140.14 145.57 
17,735- 23,233 21,340 


10.33 14.53 
12.46 8.51 


10 dm 562A 11 <*n 562.3. Noon 564.1. 1 pm 5624. 

2 pm 561.8. 3 pm 582.0. 

Basis 100 Govt. Sect. 16/10/26. Fixed. InL 1928 Industrial Ord. 1/7/3S. 
Gold Mines 12/3/55. 3E Activity 1974. 

latest Index 01-246 8026. 

•Nd-11.50, 


HIGHS AND LOWS 


S.E. ACTIVITY 


, 1981(2 Since Compllafn ' Mar. Maj, 

, High : Low > High < ‘Low j I __ 

; ! '-Dally i ; 

Govt. Sees.. 70 .6l | 60-1 , ; 127 4 ; 4 g il8 I 2Q2 r ai64 

(80/2.811 !i 26) 10(81) ;9i1,55> , (S/1/75) 1 “ ° ' 

Fixed lnt~...- 72.01 j 61.61 150.4 1 50.53 i Bargains !; 106.7 125.2 

(20.3;81) t>2B/iO>81i i28MK47i (8(1, *76) Value ...... 347.2, 306.7 

Ind.Ord 697.3 j 446.0 597.3 49.4 .'oiSMlSS*’ 

,50(4-81, '{14(1,81, 1 30, '4, -81) (28,8-40) zjjg.l Z 37.8 

Gold Minas.. 429.0 , 2095 558,9 43/5 (Equities 

.14.9 81) ' <8 5.'82i .22.-9-B01 (28(10.-70 Bargains... 134.1- 134.1 

Value 1 294.6 318.0 


subsidiary on Monday, eased 3 
to 78p, while similar falls were 
marked against Whitbread, 9Sp, 
and Bass, 221p. Grand Metro- 
politan eased 5 to 203p, senti- 
ment not being helped by talk 
of a line of shares overhanging 
the market Distilleries were 
again featured by Amalgamated 
Distilled Products, 4 dearer for 
a two-day spurt of 10 to SOp. 

Particularly firm of late on the 
£170m budget boost. Buildings 
turned easier as buyers adopted 
a more' cautious approach. The 
majority of leading issues dis- 
played modest falls, but Barrett 
Developments were noteworthy 
for a fall of 11 to 265p, after 
264p, following comment on the 
interim results. Timbers, good 
on Monday on favourable Press 
comment, also lost ground. 
International losing 5 to S4p, 
Magnet and Southerns 4 to 160p 
and Montague L. Meyer 3 to Tip. 
Elsewhere, Johnstone's Paints 
shed 2 to 93p following the pre- 
liminary results, but renewed 
demand in a thin market lifted 
Nottingham Brick 8 to 133p. A 
Press mention prompted a gain 
of 5 to a 19S1-82 peak of 113p in 
Wiggins Group, while demand in 
a thin market lifted Exeter 
Building 25 to IBOp. 

Business in leading Chemicals 
remained at a low ebb and lack 
of support clipped 6 from I CL 
32Sp, and 5 from Fisons, 287p. 


Pittard profits 


Leading Stores remained quiet 
and displayed no set trend. 
Gussies “A" finished at the 
day's best of 508p, up 3. while 
Woolworths, a dull market since 
last week's disappointing full- 
year results, rallied a couple of 
pence to 50Jp. House of Fraser 
shed 2 to 16&p, after 164p. 

Shoes were generally firmer, 
where altered. The subject of a 
successful dawn raid last week, 
David Scott rose 2} more to 27-p 
on the disclosure that C. W. 
Bament now holds a near-16 per 
cent stake in the company. 
Pittard rose 3 to 60p following 
the return to profits, maintained 
dividend and the company’s con- 
fident remarks on the trading 
outlook. 

. Ratal stood out among the 
Electrical leaders, rising 10 to 
370p following the announce- 


ment that the company has deve- 
loped a new anti-fraud device. 
Elsewhere , Security Centres 
found support at 14Sp, up 10, 
while United Scientific gained 7 
to 332p and Amstrad added 5 
further to 245p. Memec gained 
6 to 250p on further considera- 
tion of the results but Standard 
Telephones and Cables, 525 p, 
gave up 5 of the recent good rise 
which followed the results. 

Hawker Siddeley took a 
farther turn for the worse yester- 
day, falling to 29Sp on nervous 
selling following Monday’s an- 
nouncement of its Canadian 
subsidiary's poor results before 
rallying to close at 306p, still 10 
down on the day after the 
Board's reassuring statement 
concerning the group consoli- 
dated profits. Elsewhere, news 
□f the dividend reduction and 
£0.8m deficit unsettled recently 
firm Bronx, which retreated to 
finish 4 easier at 15p. IMI 
softened a -penny to 60 p follow- 
ing the preliminary figures but 
Ductile Steels rose 4 to 122p on 
the resumption- of an interim 
dividend and the sharp first-half 
profits recovery. ' Brasway put on 
5 to 74p, after 7?p, and Whessoe 
gained 7 to 87p. 

Special situations dominated 
proceedings in the Food sector. 
The Monopolies Commission 
reference and automatic lapsing 
of Rowntree Mackintosh’s bid 
for the company left Huntley 
and Palmer 21 down at 84p, after 
83p; Rowntree finished 2 dearer 
on balance at 170p, after 174p. 
British Sugar -lost 20 to 420p 
following the company's repre- 
sentations to the European Com- 
mission to shake off S. and W. 
Berisford, its unwelcome 40 per 
cent shareholder, while Brooke 
Bond shed 3 to 54p, after 53p, on 
disappointment with the interim 
results. Recent high-flyer Albert 
Fisher shed 3 to 47p. but a 
squeeze on beer positions lifted 
Linfood 4 to 197p. 

Press comment sparked 
interest in Ladhroke, which 
jumped II to I66p with the 
Warrants 9 up at X15p: (he pre- 
liminary results are due early 
next month- 


surprise announcement that 
ICTs bid is being referred to the 
Monopolies Commission and has 
consequently lapsed. Down 20 
the previous day on a broker’s 
downgraded profits forecast, De 
La Hue relinquished 5 more to 
660p following adverse comment 
J. Bfbby, on the other hand* rose 
10 to 340p on the proposed 50 per 
cent scrip-issue which accom- 
panied the good annual figures. 
Wolseley-Hngbes gained 4 to 
374p m response to the results 
and Copydex jumped 11 to 52p 
on speculative buying fuelled 
by takeover suggestions. Specu- 
lative support also helped. 
Howard Tenens. up 4 to 62p. 
With tiie exception of BOC, 
■which hardened a peony to 164p, 
the leaders drifted lower on lack 
of support. Bo water relinquished 
3 at 23Sp and Turner and NewaU 
softened a couple of pence to 
94p; the latter’s preliminary 
results are due today. Bank 
Organisation gave up 3 to 195p 
and Pilkinglon dipped 5 to 273p. 


reacted to 205p before settling 
for a net loss of 6 at 212p 
Mercantile House shed 15 t< 
435p, but R. P. Martin held the 
overnight level o< 360p. 

Tobaccos were again irregular. 
Bats, a dull market of late, came 
under renewed pressure and 
closed 8 down aX 413p following 
the proposed acquisition of 
Chicago department store 
Marshall Field for $310m. In 
contrast, Imperial were actively 
traded and touched 91p before 
ending a net penny to tile good 
at 90p after the announcement 

of further rationalisation within 

the group's tobacco division. 


Sangers closed 2 cheaper at 
46p; the price in yesterday’s 
issue was incorrect 


Publishers were featured by 
Pearson Longman, which were 
briskly traded and closed 20 
higher at 252p amid rumours 
that parent company S. Pearson, 
5 up at 250p, will bid for the 
36.44 per cent of the equity not 
already held. Elsewhere, adver- 
tising agents Geers Gross fell 8 
to 130p following a Press “ sell ” 
recommendation. 

Lack of interest and occasional 
selling made for another drab 
session in Properties. Land 
Secu rities losing 4 more to 294p 
and MEPC a couple of pence to 
218p. British Land shed 3 to 89p 
and Stock Conversion 5 to 333p. 
Selected secondary issues moved 
against the trend, Rush and 
Tompkins adding 6 for a two-day 
earn of 12 to 23Sp and Trust 
Securities firming 4 to 380p. the 
latter following a Press mention. 
A. and J. Mncklow, interim 
results due tomorrow, hardened 
2 more to 9Sp. while Municipal 
Properties, a thin market, 
jumped 60 to 900p following the 
annual results and property 
revaluation. 


CCP up on bid 


A. Holden fall 

Arthur Holden became a weak 
counter in miscellaneous indus- 
trials. falling 23 to 15Sp on the 


Secondary 00s displayed a 
firm feature in CCP North Sea, 
which jumped to 193p before 
dosing a net 12 up at 185p 
following the agreed bid from 
Tricentrol, 4 off at 172p. Charter- 
house Petroleum, which had 
previously agreed terms with 
CCP, gained 6 to 70p; Charter- 
house also announced Its annual 
results yesterday. Cluff OIL 
which holds a n ear-30 per cent 
stake In CCP and has accepted 
Tricentrol's terms, put on 10 to 
135p. Clyde Petroleum added 2 
to 77p on the successful rights 
issue, but NCC Energy shed 5 
for a two-day drop of 25 on tite 
delayed link-up with Simplicity 
Pattern. The leaders attracted 
revived investment demand, 
British Petroleum Improving 4 
to 2S0p and Shell a couple o 
pence to 34Sp. 

Preliminary profits from 
money -broker Exco International 
fell a shade below market 
expectations and the shares 


Golds rally 

The S9.50 rally in the bullion 
price to SS23 an ounce produced 
a welcome change of sentiment 
in the Gold share market 

Widespread bear covering 
coupled with persistent light 
buying prompted sizable gains 
throughout the list, although the 
increase in a number of TLS. 
prime races left most issues 
below the day’s best 

Heavyweights were featured 
by President Brand, up £14 at 
£141, while Battels recovered I 
to £141, Western Holdings $ to 
£17g and Western Deep a like 
amount to £111. 

Medium- and lower-priced 
Issues showed gains ranging to 
68 as in Dxiefontein, 968p. In 
addition to the general demand, 
the sharemarket was again sus- 
tained by the recent strength of 
the Financial Rand. The Gold 
Mines index recouped 10 points 
to 221.5. 

Demand for Golds spilled over 
into South African Financials; 
Genror were prominent and 
finally 25 firmer at 750p. 
“Am gold” moved up J to £29, 
GFSA i to £24g and DC Invest- 
ments 20 to 3B5p. 

London Financials also 
responded to the firmer bullion 
price. Gold Fields gained 8 to 
355p and Charter Consolidated 
hardened 2 to 220p. 

Good gains in overnight 
Sydney and Melbourne markets 
encouraged a much steadier 
trend in Australians. 

Pancontinental were active 
and finally 10 higher at.llOp 
following news that the Federal 
Government has given condi- 
tional approval for the go-ahead 
of the Jabiluka uranium project 
in the Northern Territory. 

Gold Mines of Kalgoorile 
Improved a like amount to 175p 
and Poseidon 3 to 80p. The Coal 
producer Oakbridge added 5 at 
77p while Meekatharra edged up 
2 to ll2p. 

Woodside Petroleum closed 
unchanged at 47p, after SOp; 
BHP and Shell Australia said in 
Melbourne yesterday that they 
have received no bids for their 
respective holdings in Woodside 
and have no wish to sell them. . 

Traded Options attracted 1,916 
deads comprising 1,399 calls and 
517 puts. Call activity was more 
widely-distributed than of late, 
although Imperial remained to 
the fore and recorded 473 trades. 
Lonrho and RTZ attracted 217 
and 202 calls respectively. Put 
trading was dominated by British 
Petroleum -with 256 deals 
arranged. 



1* 

1 A tort 

1981)2 


33a 

-i-w 

price 

eS 

date 


Stock 

Sa 


P 

< a 

• ■ 

High | Low 





Financial Times Wednesday Marcfc 17 1882 

RECENT ISSUES 


JU 


EQUITIES 


leeu» 


p ;i£[5| Q : 


1951(3 


-K 


Stock 


Wflhl Law ! 




.L 



148 ftp. 86(5 
IF.P.15J4 

00 & = 
- (F.P. - 
ISO FJ». 5.'3 
ii n iF.P.' - 
*180 F.P. 16/4 
H C F.P. — 
|F.P. - 
U B FJ*. — 
46 ftp. 19/2 


■196 168 
22 . 19 
jSH 1315 

■ 26 I 21 

38 ! 27 
( S3 ! 88 
83 . 47 
.148 ;i37 


50 

42 


! IBM 13 


62 


Amereftere.... — 

-Cambrian * atm. , ftp 

:*EidrHJfl* Popafl- 
iFbMt HoKOnfl* 20p - , 
ttrosnfrfar Warranto 

J* imm.But.sya.iOP' 

:*Mnlaytian Tin 5p „. 
HOcoonica Mp.—— ; 

[Osprey A ta a t i.. 

if*. H. InduatiUI®.— - 
.TSWBp ... 


IS- .Taw op >— 

47 ' !* York Mount...-. 


'•1 


■ISO ' iRJOrtAUX 

366 r ; 9.6 2> 3,^1 U 

84 1 - I - ' 1 

M / - j- 

S !“■ - !- 

«1 i+1 '.b3.B I l,Bdun0.4 

i5ijj •: — 5 a-. 


— ffljD- 


63 |+t -MJllM.lMbw 


FIXED INTEREST STOCKS 


Issue 

1 = 

price 


C 


♦100 

£25 

100 

F J*. 


FJ». 


100 Nil 
«99 £10 
T971slFJ». 
*100 ^10 
*100 ftp. 
*100 FJ». 
*■ I F.P. 
98A3X20 


196112 


H Jflh! Low 


stock 


r« 




30/71 35m 
14^116 , 
— 804 


2B3»!Bw«laya 16* Ln. «k, -r- vxs-s-l .* 1 * 

HI Boddingtont Brew 9 Vfe Cnv. in. 

Shurodbury £»». 6.47;, CnV.lJI 1985 — s !»4 


— jjw» 200 unurwiDurr : — -1 ~ I — 

28/3! 3pmj HproiHunting Pet Ufitabi. -j 'Wti M 

89/4! 1 1 lalxoit [Lee V«ltojr943, Rod. PtUB-wa — 


89/4; I X Midi too Valter Rod- Ct 
W/BlllOiwlOl wnd-Kont Water 9« Red- Prf. JOj — 

-11011? 993»jNationwlde Bdg, SOT. ,6 *S U7/1/83J,... Wl7| — 
- ioiat ! ioo j do. wsrt ■■■-"' ioon ’*’” 


- flOOJB’lOOU Do. 14»<t t!4/3( 
l6«:ioap ixoop Wnan 11 ** Cum Prt 

20/5j 25 l934|Tran*CwiKla PipoHnatl6<* Note* Wot! 240,^^ 


"RIGHTS” OFFERS 



73 [4f Clyde Petroleum...— 

158 Davy Corp. 

_ . 40i« * Energy Finance 10p_ 

, 87pm! EOpmiRrat Cattle IDp 

89/4i 28pm 4pm:HunUng Pet Servian. 

86/3, 896 358 ILovall (Y-L) 

18pm 18pmiM.IJ4 

229 ! 2 IS MEPC - 

24pm ‘Security Centre* 

m pmiShaw ft Marvin 10p — 

35 smith St Aubyn. — 

37 [Steaua Romana(Brlt)^ 
Xpm'Sturla 10p 




75- k-l. 

152. 

48 _ 

ajpid+.i 






=1 


1 

ML . 

38pm, 


5l &" 


37 

2>tpml. — m 


+*.- 

—It 

+9. 


+a: 




Reaunctetfcw date eaeaBy lew day for daaHng free ot mxmmp Any. b Ngmea 


bated oa pr o sp ec t ua eadmen. dDMdend rate paid or payaWa W 


capital; cover baaed on dhridend on liaM capital, g Asaumed dmdand , 
a Foment dividend: cover baaed on previous year’s earn Inga, f D tvldBBd Md 
yMd band on praepecus or otfwr oOhdaf eatfnwtea tor IW. Q G ra ea. 

T Routes easuonad. • ngu r e i or mpoR nntud. * Caver attawe far (MttMriiae 
of stares not new ranking tor dividend or ranking only for restricted Addenda, 

I Plwtag price, p 
1 Offered to hoJdet* 

capItalbHttien. (| R _ 

merger or take-over. |f Introdacthw. □ laattad to former pratotenoe bolder 
■ Allotment lettera (or 1uHy*p«d). • Provisional or pertly-paW allotment mate.' ” 
* With warrants, ft Dealing ■ oodar apecUI Rtrie. •£■ Unhatsd Stewrifiae . 
Market, tt London Us ring, t Eff ac ihre issue pica after scrip, t F orm er ly 
dealt .In trader Role 163(2} (a), tt Uah comprising five ordinary and three ' 
Cap. Shares. 


mw ranking for dMdend ear ranking owy tor rannctM wvwanna. . . 
u p Peace mites otharartee Indtcsud. 4 Issued ■ by tende r . - 
Mere of ordinary shame es a “ rights." " Issued by way ef 
SS Rsfanrodnced. TT Issued in connection vdtb raorgsid aertoa.1 


ACTIVE STOCKS 

Above average activity wrae noted in the following stocks yesterday. 



Closing 



OoaJng 



price 

Day’s 


price 

Day’s 

Stock' 

pence 

change 

Stock 

pence 

change * 

Barclays Bank 

450 

-IB 

Gumnees Pest 

68 

+10. 


420 

-20 

Hawker Siddeley 

300 

-10 

Brooks Bond 

64 

- 3 

Him day and Palmar— 

84 

t21 • 


- 212 

- 6 

Imperial Group 

90 

!+.!•■• - 

Grand Mat. 

203 

- 5 

Pancontinental IIMa . 

110 

+ 10 

Guinness (A.) 

79 

- 3 

Pearson Longman 

252 

4 2D , 


MONDAY’S ACTIVE STOCKS 

Based on bargains recorded in S.E. Official List 


Monday's 
No. of closing 
price price 


Day's 


Monday's 
No. el dosing, 
price pace 


stock • < 

changes pence 

change 

Suck changes pence- change. 

NCC Energy .. 

16 

80 

-a 

B.H. Prop. . m . 

10 

440 

-10 

Unilever 

13 

628 

-14 

GEC ..; 

10 

SIT 

- 4 

Driefonteln 

12 

800 

• -31 

Granada A»». 

10 

234 

-12 

Barratt Deva. .. 

11 

278 

- * 

GUS A 

10 

506 

- 2 

De Beers Defd 

11 

228 

-11 

Huntley & Phnr 

10 

106 - 

- 7 

GKN . 

11 

165 

-5 

Shall Transport 

10 

346 

. - 2 

BP 

. 10 

27S 

- 2 

Standard . Tala.. 

10 

630“ 

.4- S 


OPTIONS 


First Last Last For 

Deal- Deal- Declara* Settle- 

ings logs tkra meat - 

Mar S Mar 19 June 17 June 28 

Mar 22 April 2 July 1 July 12 
Apr 5 Apr 26 July 15 July 26 
For rate indications see end of 
Share Information Service 
Money was given for the call 
m Exeo, .United Scientific, 


George Starts, . Benold* Dun- 
donian, Premier OH, Imps, 
NCC, Woodside. Huntley and 
Palmer, Staneleo and Ersklne 
House. Pots were taken out in 
Huntley and Palmer, Tozer 
Kemsley and Millboura and 
Metal Box, while doubles' were 
struck in 1KLP. Kent, BP and 
ICL 


Financial Highlights 1981 


In the year under re- 
view, the balance sheet 
total of Badische Kom- 
munale Landesbank 
International SA in 
Luxembourg increased 
by 46.5% to Flux 3d6 
billion (US $ 862.6 mil- 
lion). Lending activities 
contributed substantially 


1981 in brief 

(in Rux million) 

Balance sheet total 

36,617 

Diip from hanlcs 

20,013 

Securities 

1,218 

Credit volume _ _ 

21,467 

Duntn banks _ 

30,685 

Capital 

1,050 


to this growth with credit volume expanding by 48% to 
Flux 21.5 billion (US $ 505.7 million). 

Deposits accepted from banks in the amount of Ffux 
307 billion (US $ 722£ million) were the most import- 
ant funding source. Deposits from customers grew 
considerably to Rux 3.6 billion (US $ 83-8 million), 
representing 10%of current liabilities. 


Deposits placed with 
banks in the interbank 
money market amounted 
to Rax 9.5 billion (US $ 
223.8 million). 

The level of net profit 
of the previous year was 
maintained in1981,anda 
dividend of Rux40miflion 
was paid. After allocation 


to reserves, capital and reserves amount to Rux 1.1 
billion (US$24.8 million). 

For a copy or our Annual Report just contact us ah 
Badische Kommunale Landes bank International S A 
P.O. Box 626, L-2016 Luxembourg, TeU 475991-1, 
Telex: 1791 


BADISCHE 

KOMMUNALE LANDESBANK 
INTERNATIONALS A 


NEW HIGHS AND 
LOWS FOR 1981/2 


The toUawing quotations in the Share 
intormatrcJi Service yesterday attained new 
Highs and Lorn for 1981-42. 


US $40,000,000 


INDUSTRIAS RESIST!. SJL 

(Incorporated in the United Mexican Suites) 


floating Rate Notes Due 1988 


In .accordance with the provisions of the Fiscal 
Agency Agreement between Industrias Resistd. S. A 
and Continental Illinois National Bank and Trust 
Company of Chicago, dated as of 8th September 
1981, notice is hereby given that the Rate of Interest 
for the next six month Interest Period has been fixed 
at 15|% p^. and that the interest payable on the 
relevant Interest Payment Date, 17th September 
- T 982 , against Coupon No. 2 in respect of USS50,000 
nominal amount of the Notes will be USS4, 025.00 
and in respect of US 55,000 nominal amount of the 
Notes will be US S4G2J50. 


Agent Bank 

Continental Illinois Limited 


17th March. 1982 


U.S. $20,000,000 


■ Floating Rate Subordinated 
Bearer Participation Certificates 1 990 


issued by The Law Debenture tatennediaiy Corporation Limited 
evidencing entitlement to payment of principal and interest 
on an advance made to. 


Dennarske Credfttank (Luxembourg) SA. 

repayment of which is guaranteed <m a subordinated basis by 

DeanoE^eCrediftank 


DnC 


In accordance with the provisions of the Certificates, 
notice is hereby given that for the three month Interest 
Period from 17th March, 1982 to 17th June, 1982 the 
Interest Rate will be 15-fe% per annum and the Coupon 
Amount per U^. 52*000 will be.U.S. $39-13. 


Credit Suisse First Boston Limited 
Agen t Bank 


NEW HIGHS (33) 

LOANS (1) 

FF1 fUK Fiu &Lpc 
1301-34 

„ BEERS <1> 

Burtcnwcod 

BUILDINGS (3) 
\awrent* fWJ Wigvtns 

Rubercid 

„ CHEMICALS 

Ptvso 

STORES 111 

Home ClMrm 

ELECTRICALS (S' 

'■n«ndn Ei-c. Se«iri^f Centres 

L*W. Scicntlflc 

he:« fG. H.* 

ENGINEERING «41 
‘ v wcod Cartwright CR.J 

.■ratway File Indmer 

HOTELS C1> 

Kennedy Brookn 

INDUSTRIALS Hi 
;«iby Leslie J.B. Holding* 

Elbicf Melal Closures 

E»ode woiselev-HuahM 

LEISURE m 

PltJsuraiTU 

MOTORS m 

Train 

NEWSPAPERS (1> 
Pearien Longman 

PROPERTY (2) 

Reflation Srcvhawk 

TEXTILES (1) 

Early's of Witney 

TOBACCOS rt) 

Imperial 

TRUSTS (21 

Mere, Comm. Mtt. Pearson (SO 
_ OIL A GAS (1> 

Tiber Encrflv 


NEW LOWS 133) 

AMERICANS IS) 

BanL America St mu l te i ty Pattern 

rrown-Zeilertwcl, 

CANADIANS (1) 

Sow Valiev 

CHEMICALS Cl) 

Lelflti Into. 

ELECTRICALS CD 

Fe/ltsir 

INDUSTRIALS CS) 
Chrlitte-Tyler Ovcostona 

Fletcher Chcllense Walker A Homer 
HoTIb Brothers 

TEXTILES 111 

Shaw Carpets 

TRUSTS C4> 

Drayton Far Eastern Newmarfoet 
Energy Res. 5er*ka Eomn.bc nd 
OIL ft GAS C9) 


Cambridge Pet. Moray Firth 

□o net Res. PalHser Ra 


Gullnrm. Res. Can, TR Energy 
Hamilton Oil Tncentrol 

lirirrmtisnil Pet. 

OVERSEAS TRADERS fll 
Harrisons Crosfteld 

RUBBERS (11 
Hantwns Malaysian 

TEAS CT) 

McLeod Russell B.4pc 
Conv. 

MINES 451 

Rand Lon. Coal Pf. York Resources 
North Kaigurli Tara Exirtorition 
Vulcan Minerals 


RISES AND FALLS 
YESTERDAY 


Rises Falls Sumo 

British Funds 2 72 19 

Corpns. Dom. and 
Foreign Bonds M 10 17 47 

Industrials ............ 209 282 885 

Financial and Prop, 56 104 368 

OHs 


PfantzGonsr. 

Mneo 

Others 


31 33 46 

3 S 16 

72 15 77 

52 44 ED 


Totals 


438 556 1.480 


ELDERS/WOOD HALL 
The offer by Elders EEL for 
alt the ordinary and preference 
of Wood Hall Trust has been 
declared unconditional and 
extended to April 16. 

The company is now entitled 
to 92J21 per cent of the ordinary 
and 93.48 per cent of the 
preference. 


FT-ACTU ARIES SHARE INDICES 


These Indices are the joint compilation of the Financial Times, the Institute of Actuaries 
and the Faculty of Actuaries 


EQUITY GROUPS 
& SUB-SECTIONS 


Figures in parentheses show number of 
stocks per section 


1 

2 

3 

A 

5 

6 
8 
9 

10 

21 

22 

25 

26 
27 
29 

32 

33 

34 

35 

36 
39 

41 

42 

44 

45 
46. 

52. 

51 

59 

61 

62 

63 

65 

66 

67 

68 

69 

70 


71 

81 

2L 

99 


CAPITAL GOODS (2X0) 

Building Materials (25) 

Contracting, Construction (28) — ... 

Bectrieals(31) 

Engineering Contractors (9) 

Mechanical Engineering (6^ - 

Metals and Metal Forming (12) — 

Motors (21) 

Other Industrial Materials (17) 

CONSUMER GROUP (199) 

Brewers and Distillers (21) 

Food Manufacturing (21)_____ 

Food Retailing (35) 

Health and Household Products (8) . 

Leisure (24) 

Newspapers, PiiiGsh!ng(12) 

Packaging and Paper (13) 

Stores (45) 

Textiles (23)- 

Tobaccos (3) 

Other Consumer (14) 

OTHER GROUPS (78) 

Chain reals (16) 

Office Equipment (4) 

Shipping and Transport (13) 

Miscellaneous (45) 

HlMgaaL CROUP (487)— 

OHS (13) 

SG3 SHARE HOSE 

FIMAKCML GROUP (117) 

Banks(fO 

Discount Houses (9) 

Insurance (Life) (9) 

Insurance (Composite) (10) 

Insurance Broken (7) 

Merchant Banls (12) ....... 

Property (49). — 

Other Financial (15) 

Investment Trusts (112) 

Miring Finance (4) 

Overseas Traders (17) 

ALL-SHARE INDEX (750) 


Tues March 16 1982 • 

Mon 

Mar 

15 

Frl 

Match 

12 

Thor 

March 

11 

R 



Est. 

Earnings 

Gross 

Div. 

Esl 

P/E 



■ 


IntR 

Day’s 

VWd % 

Yield % 

Ratio 

Indn 




No. 

Change 

* 

(Ma*0 

(ACT 
* 30‘S) 

(Nel) 

No. 


H 

No. 

371.07 

-02 

9.24 

429 

13.63 


37142 

37121 

36829 

355 J8 

-L0 

13.01 

533 

923 

333.01 

33882 

33602 

333.78 

61331 

-0.7 

1459 

4.67 

84C 

.617.75 

615.93 

613.72 

kTTTTI 

1268.76 

+04 

731 

233 

17.49 

aafs 

1259.70 

125039 

iiw.a 

58532 

+0-2 

12.C9 

5.79 

936 

534.47 

KS.W 



19246. 

-0.9 

1039 

5.78 

11.69 

2W38 

194.93 


193.43 

164.98 

-05 

737 

733 

19X4 

36E.76 

166.92 


163.92 


+02 

B 

649 

— 

9927 

BrlTI 


9852 


-03 

■7T1 

551 

14.42 

599X1 



3ULK 


-8.6 

3237 

584 

9.93 

5734 

2S=JK 


296.48 

29L93 

-13 

1631 

6.68 

7.47 

296 JB 

£9129 

ft. 'Jr- 1 


273.78 

-13 

15-56 

6.61 

7.73 

276.97 

23S37 




_ 

8.79 

326 

«« 

612.73 

Hitt 


HE 

337£0 

-0.4 

6.05 

4.08 

14.60 

239X1 

386.47 

44630 

+03 

934 

4.96 

1344 

«489 

44739 



536 JS 

+0.2 

1093 

685 

1224 

51579 

525.40 



14439 

-0.7 

13.05 

7.46 

fl&9 

1C5AS 

145.91 

347X3 

TT" 

27053 

-02 

13.46 

4.55 

12X3 

27U5 

27233 



172.63 

-0.4 

931 

5.79 

13.15 

17336 

17531 



308.85 

—13 

1939 

8.46 

5.73 

53152 

3U67 


TT 

287.15 

255j65 

—03 

—Q& 

023 

1335 

589 

6.09 

937 

25737 

25734 

26555 

277.46 


rtf 

33838 

-13 

2330 

632 

9.64 


343.72 


jj 

128.48 

-13 

12.53 

6.69 

9.72 

13984 

13958 



564.93 

-13 

18.97 

654 

627 

57873 

566.78 

■■ 


32L0C 


1134 

530 

10X0 

32936 

32181 

rrr- 

rt j 


FI 

l-.ttM-i » . >a-i ^ :-r-M | 


K)!l 




i^TTl 

■ v>;i 


■ vJJTlI 


■EEM 

bULfA gjxi t— :iJ .fc .1 fi.-. 11 ft .VJ o.ni 1 

258.53 

-14) 

— 

633 


2iU2 

mm 


yrTTIi 

275 J3 

-2-7 

33.75 

7.63 

287 

233.52 

a 

r'Trjj 

ftt 'T T H I 

238.17 

-04 


931 


239.16 

24029 

f I"/' . f 

w. t -al 

260.03 

-03 

— • 

6.19 

_ 

260.73 


ft ',*.7-1 

fcV.T! ■ 

167.67 

-83 

— 

824 

— 

168.09 

U7.« 

168.78 

168.15 

451.05 

-U 

987 

S4S6 

13.70 

mm 


457.05 


145.02 

+0.6 

— 

5.76 

— . 

MU3 


146 24 


458.CS 

-04 

AM 

322 

2*54 

45173 

Wl 

46836 

46354 

18039 

-03 

1583 

644 

7.77 

381M 



18162 

2%.M 

-02 

' — 

550 

_ 

29739 

Z»38 

29954 

299.78 

198.93 

+14) 

17.03 

735 

7.13 

196.96 

29034 

2S2J1 

aszxz 

37733 

-13 

1388 

8.44 

880 

3S129 

38750 

38733 

39023 


-04 

— 

589 

— 



lam 



Year. 

W 

(BftpraL) 


Index 

No. 


vm 

zas 

mm' 


nut 


FIXED INTEREST 


PRICE 

INDICES 

Tecs 

Mar 

16 

teyS 

change 

% 

Mon 

Mar 

15 

ad a& 
todqr 

1962 
to data 


Srifiafe Gwemamt 






1 


109.90 





2 

5-15 yean 

110 JO 

-oa 

U0.93 

I 

221 

3 

0rerl5yon 

11457. 

-020 

114X1 


252 

4 

ImdeemaWts^.— 

\V\K3 

-030 

12219 


162 

5 


me 

-020 










6 

OekintareiftLow. 

87.47 

+0X9 

87.40 

- 

3.09 

T] 

Paafi-uu ■ 

nciuniu..Mi l K 

6435 

r*o.o6 

6432 

- 

2J5 



AVERAGE GROSS 
REDEMPTION -YIELDS 

Dues 

Mar. 

16 

Mon 

Mar. 

.15 . 

VMf . 

■ -Am ■ 

1 

WGnnicad 

!*■ 5 yun MUWH . 

1230 

'••fair. 


2 


15 years ... 

12X2 

12«1 £ 

• 12X5- 

3 


25 

1251- 

was 

: S2 

4 

Median 

5 years. 

14X6 

: aw - 

5 

Couponi 

15 years. — — 

13X5 

un 


.6 

7 

High 

25 ywn.„ 

5 yean 

133 4 
13.96 

1331 

nn 

.33J*- 
- ISM- 

8 

Coupons 

15 years..;, . 

1482 

»97. 

UM-' 

9 


25 yean. s ... 

1151 

13.41 ’ 

33* 

10 

Irredeemables- 


12X1 

XtXt\ 

'.Uitt 

11 

Dchi A Lem 

5 yean........... 

HX5 

-,»7S’ 


12 


IS years..... 

1465 

H66 

•1432 

13 


25 iifars~._ 

■14.65 

3466, 

»34.. 

14 

Preference,^. 

t 

1528; 

•-25X* ■ 

14» 


l ,eco ^;_ l, “ 4 * lt f s * Uf 11 * 5 constituent changes are published In 5atntlay Hsues. Aaew teaf.conUtwntt)| 

available from the Publishers, The Financial Timex, Bracken House, Cannon Street, Lontov -EC4P 4BY, price JSp, ty post 2Bp?- ‘ 


V», 





























































•-EtaWfiW. lTinies„ Shuredax March „ 1982 . _ 




financial Himes Wednesday March 17 .1982 

INSURANCE 
BONDS 


Crown life 

Cram UfrHw., Muring 6U211XW 048625039. 

8w*6E=r' 

Manp'riftf. ML 1 


A»wwki C«. Ud. 

EC4- m^MOlU 

BESF^v 

Money Fend ... 

■pSKfe 


Equity Ser. 4 

fisfcr 

. Cphm.sw. 4- 
FiwJlrt.M.Ser.4.. 


High toe. 

Peratan' 

Pension 
Pension 

Peraton Rsetfinu. 





.Fd-Aet 

v.Tst. Fd. Inn. 

— ItoalyFd-A^’l^:'. 

— Mane* Fd. loan. 

— IWcrT. Fd. Act— 

— inter'L Fd. Idoil. 

— High income Act 

z SStofcrj 

— Can- Snag liw.Fd._ 

= • east: 


«wv Uft AfMrtnca Co. Ud. 
3LOMtaJflg|onSuWl 014975962 




FT UNIT TRUST INFORMATION SERVICE 


Legal ft Central Cltatt A*sur.) Ltd. Norwich (Man Insurance Grow ' 

Man. HMK ' “®* 2D0 


Stantfla Uf« Asswance Co. IU> „„ AAuthaot Sawffln (C.L) Ltd. (a)fcXh) 
161-166 Fleet Si_ London EC42DY 01-353 9511 P.0. Box 284, Sl Hrifer.Jeriey. 053476077 

aa ra mtn 1U11 _A4 VWl>.l -- 1 n#MMH • 


§aas ==5 

EouSMw. 

Do. Acorn. _ 
Ftadldtw. 

Do. Accum. 

IMt- 

Managed Initial 
Da. Acorn.— 
ProMrtyliddai. 

Do. Acean— 

Exempt. Cat) Ink--— 

n»- Am™ — 

Exempt Euty. Inrt — 

Do. Aram... — 

t Fixed latt 




AMEV Uh Assurance Ltd. 
24, Prince of Wafei Rd^BlnoMh. 
Managed Fd. 

MmwyFd.. 

EooHyFd.. — 

Fixed Im. Fd. __ 

Property Fd._, 

Managed Pen. Fd.. 

RSMSfe fc 

Baxss? f£- 

Property Pension Fd. 

sssrasr*.. 

income Fd 

I Ml. Growth Fd. 

CaUtai Fund 


Bwetayi Life Assist. Co. UtL 
25? Bomfbid RA, E7. 

Barcttoboods > 




srffla 5 == 
sarc£= 
sfiB***- 


Stack Kona Lift Ass. Co. 

71, lamtanl 5L, EC3. 

Stack Koese Man. Fd.! 

Managed In*. Fd. 


Income Fd. — 

Extra Income Fd.. 

WBrtdwkfc Growth FA. 

. Balanced Fd 

Sndr Go’s & RecvJS _ 
(fit. Technology Fil _ Ml 
Nth. finer, ft Gesfiri.. ID] 

BK&Sk a=B 


JraEEEE 

P«IB, 


ii£= 


Crusader Insraance PLC 

Tower Hie, 38 Trinity Sq,EC3til40J 488 2323 

fxs^^km iM*d = 


0202762122 Eagle Star iBscrJIlManil Assur. 

— X, Threadmcdte St, EC2. 01-5681212 

— Eagle/ Mid. UrdB [74.1 764 -0.4] 6.12 


Equity & Law Life Ass. -Sue. Ltd. 
AmerDiam Road. High Wycombe. 049413377 

S sss»e=' 

ESfiaffirer: 

SS:S SS?fca= 

Far Ea« Fund-.- 

internet loraT Fund 

Mixed Fund — 


Equity A Law (Managed Funds) Ltd. 

Am-rxXam Road, Hi*i Wycombe. 049433377 
hxi. Pen. Equity 

Ind. Pen. Proper 

lnd.Pea.FbSa IM— 

Ind. RmJa£Ut.Ses.- 
Ind. Pen. Overseas __ 

Ind. Pea. 

Ind. Pen. 
lud. Pm. 




EquHyFortt , 

RH&Tfcd 

Deposit Fuad 



Gilt Plus Ace— 

International Aee.__ 
Pm. Managed Ate— 
Pens. Equity ficc.— 

Far Prices trf otter 
Basis Rues phrase 



'fe-Sfifc 


DC 

InpR Linked 5es.* 

N or. Ilidts Mar. 15?!? * SfiU! 


— see 




144.71 - 


14.0 


Pearl Assorsnca (Unit Funds) Ltd. 

252 High )MbanvWClV7EfL OM05B44], 

1SBS;SS=K5 

i nr. Equity 

nv. Managed 

DrJ 3 » l W 5 - 

Ptoenir Assomcs Co. Ltd. 


Stxnbni UfB AMranMCowiMny 

3 George SL, Edinburgh EHZ2XZ. Q31-2257971. 
Managed 
Property. 


E |= sk 



aSss^SK^SKEB*- 


-- -aL- eg^-g,- TT aH-OJl llfiO 
Dealing on Wednesday. 

B.i.A. Bond I n ves tments AG 

10, Batrerttrenc CH630L Zug, SMttofland 
Bearer SW. Feb 19 ...00,165 W.7IW — l - 

Bank of America IntenvtfonO) SJL 
35 Boolerard ftrjal. Laxwnbounj G.D. 

WUinvest Income lOSUMN 1IL5IH ..-..J10.76 

Prttt « March U. Next a*. Unch 17. 

Baicbys Unicom lirtematimsat 
1. Charing Cnni, SL Heller, Jersey. 053473741 

&* ** 

Unfcond Trust pjsjSUI 89. . 

Kaasaea^.j -3 

fcfeS :?Sfe=P 

Do. MI. Imawie- { 

Do. Isle m ManTst | 


Next sob. day April ! 

Life Assur. Co. of Punuyhmiifi 

8, New Rd, Ctmtanf, Kent. . Medway 812348 

LACOP Units IUA5- .U3B--4 “ 

Lloyds Lite Assurance 

ZD^CWttn .0202 . 


— GnupPmskn 


G.T. Management Ltd. 

26. Fins tmypm*. London, £C2» 70J. 



01-6231288 



01-6269076 

— ^ — Sun Affiance Hew, HmStOB. 
Pioneer Mutual Insurance Co. UtL " I 

1st r 

■a? 

pbfj 
srs&f- 


Gronp 






040364141 P.O. Bw^Dougbs, L&M. 

: tSS^’SSXnzI 

‘ CANRHO** Marthl.fi 

• MA PSA* Jan. 4 IS9J3 — , — 

' “ wynsl issue *310 M "*£1. Next *aL April 5. 


Bridge Management Ltd. 
BPO Bor 590, Hong Kong 

NTasN March 1 f 

Nlnpon Fd. March 10 


::::J u 


L29 


Premium Life Assurance Co. Ud. 
EasKhestcr Hse, Haywards HraUi.0444 58721 


fiSP^E 

i 

OtB WBngd. Fd. 

'A 

fcw . . 

iSFfc 

hESCSSS 



»h$J, 

Intel ratio nl Equity.-. 

92.0 



Sun Ufc of Canada (UK) Ud. — 

aifasy" 1 !]®! ,"????” eacssrsa 


Britannia ItrtL I mre s t me nt MngnL Ltd. 

■ssi^gr"’ "asa sw “- “• 

UJS. Dole Bmmb 
Am. Smaller Cos.Fd..L__. _ 

OridFubd*— ®S7 £l 7S9 

Urt«erjlSrwUi Fond _ Bans £ — 

Dollar Income Fd.. ..|»764 DAI UfaO 

tMjjj Bxnomtatxd F**ds 


— Far East Fund — . 

— Jersey Enemy Ts — 0*4 

_ Jersey GUt"— fij.T 

— U. K. Growth Fund.... 

— USM Fund* 



Prog. Eqnfty & Ufa Ass. Co. 
42 Houndsditch, London EC3A 7 AY 
ILSifk Prop. Bond— [ 24Z6 


,01gllM4 M^acra, 


San Lift Unit Assurance Ltd. 

107, ChewsMe, London. ECHV 6DIL 0272-299 524 
" - 1177.7 H?4l-Lg - 


5fwflng OeuMtt Forth 
Hxagri Cumcy. Fi*yr' 
" •" ThhJ**.E 


Priors at Much 1L Next seWoKiit fiwft 15. 
on Rmfi-Wces A*aUaW» On RanesL 


Property Growth Asm. Co. UtL 
Lam House, Croydon CR91LU. ID-68006D6 

Esssasr«>=: 


Managed Acc.„. 1138.8 

Property Cap __D*4.4 

Property Act 1135 ." 

E^tyCra- — 


GJ. Plan Bund Fund J 
GT Pta High YU Fndl 
GT Plan Far East FoJ 
GT Pin N Am Fund 

Pen Far East Fd.. 
GTPenW&ridnirFiL 


— Asticuraziairi GENERALI S jUL 
Z 117, Fenchureh St, EC3M 50V. 01-4880733 

InU. Managed BDnd_|135J M£7| J- 



m 




In*. Fd. Uli 

Pension Fd. UK 

Conu. Pen. Fd—. — . 

Cmr. Pits. Cm Ut 

Man. FeraFd 

Man. Pen. Cap. IK... 



:g| = 


Canada Life Assurance Co. 

24, Hkdh SL, Putters Bar, Herts. P. Bar 51122 

8& | ::rj “ 


Canada Ufa Asurance Co of S. Britain 
24 High SL Potters Bar, Herts. P. Bar 51122 
Managed Pea Fund). 


Cian aa Ammnrr Ltd. 

1 OMnric Way, Wemhley KA90NB. 014028876 

Equity Units ‘ 

Property Units.—. 

Bal.BdJpncAlnK- 
DepositBond- 

Sdyudty. 


General Portfolio Life Ini. C. Ud. 

CriHsbruokSL,Cheshuot, Herts Waltham X 31971 
Portfolio Fd. ficc— „| 

Portfolio Fi. 1 nil | 

Portfolio Fd. Ctt..— 

Portfolio StejjTAct„ 

Portfolio Man. Ink. . 



Growth & Sec. Life Ass Soc. Ltd. 

48, London FnM Exctangr, E16EU 00-3771016 
FtoxMeFImnce. 

LandtnokSecs — 

LandhankScsAcs. 

G.&& Super Fd.. 


>t Exchugr, E16EU 01-377101 

sEh&Hdr 


Pn». PmsCap-Uts. 

London A'dcen & Nthn. MB. Anar. Ltd. 

129 lOngsway, London, WC2B6NF. 01-4040393 

'Awl Bulkier’ 152.4 5521 1 - Gita PeS FiCra .. 

Eo^Pws.Fd^—. 

- Equity Peis. Fd. Cap. 

London Indemnity & Gid. ha. C o. Ltd _ l4 . 

IB-20, The Forimry, Rmflog 583S1L PNnrideiKI iCapitol Ufe Amc. M.JUU. 

WL6 484 —4 - 30 Uxbridge Rtad, W12»>6 

Fixed IntwetZT 


i Acc— 

International Cap 

InternaHonl Acc. — 

American Cap 

American Acc. 1 

Far Eastern Cap 

Far Eastern Act 

DistrCamoa— 


HI Managed Cra- 
Pens Mmaged At*._ 

lesas 






.... 

ssr- 


Brown Shlgiey Tit. Co. (Jersey) Ltd. 

P.0. Sox 563, St. HeKer, Jersey. 0534 74777 

I MfiftatB* m^S 1 ^ 

Butterfield Management Co. Ltd, 

— P.O. Box 195, Kamlnun, Drnnixto. 

= iUHiB 

— Prises at March 6. Next wh. day April 5. 

062425031 
rd"ii — 


CAL Investments (to Ml UtL 
L ^NnTdeaHiiB Ay -March 


Cepdim SJL 

po.Bc 


. Box 17B, 1211 Genera 12. 010 4122 466288 
Fonsetex 120OS-4JSI 2.10 


— Btmdselex. 


gSgfcr:, 

PeralntrriiSc— — I 

Peas. American Cap.. 
Pens. American Acc.. 
Peas. Far Earn. Cop. 
Pens- Far Eum. Acs. 


Target Life Assurance Co. Ltd. 
House, Gatehouse 


..! L01 


= KULq 

mmumFnL ut— | 

Deposit Fd. Act. 

London life Linked Assur. Ltd. tnd - p '* 

100, Tenxrie SL, Brfstoi, BSZ6EA. 0272^79179 

" “■ 



BuanKan Royal Exchange 

R oyal Exc han ge, E.C3 . 01-2837101 

PnpMQ i BnS!?!?.I2t(Ll 302JJ . — \ — 
USE Upload An 
Managed hiWd 
Do. Accum:— 

Wty rnetrai- 

Do- Accunr. 

F)Md l 


- SffiT 

— asEPnt 


LAES.IJ.2 s 1 




POBJJ-n.Fd.Acc.- 

EsSS&ee t 

Fxd- InLAcc. — — : 
taLPeaLFraWLAcc.- 1 

InttH. Ate 

jnd.pHK.IimiLAcc. _ 
Maraged Fd. Acc. 
UxL^MraFcLA.- 

- 

__ lrn.Pens.Pinp.Hlm. 



mm**?*! 1 E£ 

— 4 Urn- Fund lnc_._ 

KEfJSSSSr 

E 0 ftc_ 

PKp.Ftf.C4P 

Pnp.Fd.Acc_ 

Prop! Fd. (nlL_ 

Ira. 

ssbpl. 

Find InLFd. tot— 
Dep. Fd. Inc 


5941 


Da. A cc um. - i 
htfcnwckww fnMV.~| 
Do. Accum... 

Property Initials 
Do. Actum— 
t initial 


Pros. Kwigrd Wfid. , 
Pro. Managed a«il. 
Pm. Equity MUUJ 
Fens.EqDlwAu.__, 
Pm Fxd. Inc IrdEri 
Pens. Find InLAcc.. 
PmlMTinUal — 
Pens. Inti Act.. . 
Pens. Prop. Initial... 
PmfhraAcc- 
Pens. Depos. I . 
Peis.Depos.Acc. 


London A M anch ester Gg. 

Wtodade Park, Exeter 
lincst TKfA*_- 
PropertyFliMf*—... 

FVxSe Fund* — 

Rxed inreronFd.. 

SwSkf£1_ | 

. saber Find _l 

EaemM ImesL Tst | 

Exempt Property . 


09252155 


Exempt Ftexfbte. 
•NttaM 


2ZLBMamHe,EC2, 
Managed Fd, 

%m#Sd 

Enuri* Fond 
FVd.Tnf.Fiii 


to price wfnra rated iragd. dwgb apply 


Capital Ufa Assurance 

CouMon Home, Chapel Ash Whtm. 

SSaaa-i W | :d = 

Hambro Lift h a w— PXX. 

r - ~ i rib —7 OM Park law, London, WIT 3LL -01-^90031 

tor Ctartertxm MgiM MuUpie FtoaWi ft Ufe n^ lBLPt ^ ,_.j - 

CMefMn A m ainc a Fink 
11 New Street, EC2M ATP. 

Managed Growth—. 

SS£stsz 


>1* 6 Graup mj.nt.jKM PradentU Penstaw Limited 

A mi ri c an Rec. PomL. 

Aimnriasta Bond, 

COmwcxWy 

^sSir,H3gg| SH3S- feu* 

— cash 


tor Other toah arxf Cnriaf Ontti ring 0&7W 9111 

Provincial Uft Asstmnca Co. UtL eSSf^cS.. 

0M47 6533 ux&StiyRL&iL 
— U.K. EqnRy Fd. InfL- 

— InL EiailtyFd. Inc. 

— InL Equity Fd. C ap — . 
— • InL Equity Fd. Acc.— 

— tot Equity Fd. lid | 

— ReL Plan Ac. Pmu 

— • Pl»n Cap. Pen 

— DtuLHn.ra.loL_ 

— . Man- Pen. Fd. Cap.— 

— pit Pen. Fd. Act. 

— Gm Pen Fd. Cap 

— Prop. Pen. Fd. Arc^ 
— Prop. Pen. Fd. Can.— 

Guar. Pen. Fd. Acc— ! 
— - Guar. Pro. Fd. Cap.— 
— • Sterling Fdud__ 

653l U.S. DcHxrFimd 

Swiss Franc Fund 

Deot^wMartFimd. 
01-4059222 V*"™ - 


_ NorthAn 

z ??S 5 


z KSteKZ 

Deposit Pero- Acc. __ 
Property Pens. Act _ 
Fix. Iel Pens. * 



Eontof Pens. Acc— 
For CM 


UuR m id oSw Prices ring 01- 



.Capital Asset Managers Ltd. 
Bermuda rise, SL Julians Are, 5t. 
Guernsey C.l. 

The Currency TraM -195.0 99.B 


Capitol Int e r na t i onal Fund SJL 

43 Boofovard Royal. Lu xe mbo u rg 

Capital InL Fuad [ US$2323 1 —i - 

Central Assets Management Ltd. 

Ctarael rise ^SLHeOer. Jersey. 0S34-73673 

Central Assets. (£22.70 212721+0071 — 


Charterhouse Japhot 

1 Paternoster Row, EC4 


01-248 3999 


Kan! 
0624 

=i 


Chawton Commodities (Me of Man) Ltd. 
29, Athol Street, Douglas. I aM. 062421724 

ffl 

£85 


KonmchUrtal Trust. 
Nomauoy Com. Tsi_ 
CndL Currency ft 


CerflhM lab (Guernsey) Ltd. 

P.O. Bn 157, SL Peter Port, Guernsey 
land. Mao. FA 12254 245J* «.,4 — 




— Series? 


Traastoternatlonal Life in. Co. Ltd. 
55-57, HW> Hofoonv WOV6DU. 01-851 7481 
Series 2 Man- F^__| “ 






061-2369432 Series 2 (Tse«L Fa. , 

I ziz Ws££«rz 


arcaaii aaSSfe. 



Trident Life Ansa ranee Cu. Ud 
Lontkxi Road, Gloucester. 


ty of Wntmlnster Asurance 


SSSSRiSl— i . 
effiSte.— , 

Money FuW— __ 9 

Gilt Fund 


Black GoMFd.~ 

PULA Fund, 

ftKSiife 

FwW coneody ted Knew 

SSSsssF 




051-2274422 

233i| +(U| — intarridloBd. — 

Fiscal 

Growth Cap.. 

01-5548899 GrowthAet- 

E pfe 




Clerical Madftad U»a««i Fm* 
13,SLJamtrtSq^SWlY4Lfl, OM30S4W 

Wad Fuad ~ 

Cash Fund 

Prices Man* 10. 


CamaectM Unton Group 

St H*fM\ X Itoderoiuft K3. 

Vn. An. March 13 — L„MI 
Da-AntyManf^ niTiidr leraonwe 

N^’wcrtUnflont-i 


Confederatton Life towraaca Co- 

Sataweryla^WSAWE- 01-2420282 

Puud “ 


3066 



tyfmtej..— -i 
wtr Pente— - 1 
matwuBl Pea— J 1 
iPfuuaa. 




Z Tyndall Asxuyance/Peasians(A)(b)(c) 

— IB, Caoynge Hoed, Bristol. 0272732241 . 

3-1 





¥JI». 






•— * 


X:i 




l4j 




! 


*<M» 


m 






::: 

\ ATM) 

O..U.X 


Ear Em 
IntetTMi 

CO-499 4923 



•Prkra x Fabruaty 


SS.KS! 5 %«- 
saaafSiK 5 8 H=J = 


fW.Ste- 

Fixed latfapg 

infoxed Sera Ace. 

indaxed Secs. Cap 


MnKipie Health and Ufe Assur. Co. Ltd. 

sssrs ^”"- 8 ™ 1 c ™'’ WStoj. 


SS^inarejt — 

Intfrnatienal — 

ar 2 === 


Chrtfw. Erwroy 1 


temranee Ca. Ltd. 

H.E-C3. 



Imperial Uft Ass. (to- of .Canada 
ffll-6265410 Imperial House, Gofldftml. 

| _ Growth Fd. March 12 — 

:z::| - mwrMaflFdM*rj2 7 i 


attEaar«« 








Index Luiked OW 

Exempt FxdTlnt Init-Jli 

Do. ftFfjjiH 

^xn^niixni. tatt— . 

0305887766 Ewn^rep . lntt.- 

■ _ Do. Aeoxn. — — ■ 

_ - Exotw Cash Inn. — I 

Del aedol I, — 

_ Exempt lira Wt— : 
_ Do. Accum. 




j “ Scottish Mntnal Assurance Sod^y 

— WSLVtaonlSL, 

— FtorfiadFefe.36— ; 

— PraMogd. 

- Scottish Widows’ 

Z WBraTOBfltegh 

iraPaLllUrehl? 


Windsor Uft Assur. Co- Ud. 

Royal AKwrt lira. Sheet SL, WkxMr 68144 

Investor links 

Acssn. P«. UnhSw_ 

Hex. Irw.Gimrth 

Futare Aad Growth 
RcLAss’dPen 


^ E OFFSHORE & 

= OVERSEAS FUNDS 

— Adis l a d iitomit 

Posdacfa 70B, 8000 HnU 1, Tetex 524269 
Adbeoia. 


naming Japan fund SJL 

37, roe Motre-Owne. Luxembourg 

Fleming Mar. 9 1 USSSL74 I 4 - 

Frankfort Trost tevestment — GmbH 
Wieserou 1,0-6000 Frankfurt 

FrtinK r Q&k£?d.“l»l§i4 — 

Free World Fund Ud. 

Butieriirid Bldg, H smitten, Bermuda. 

MAV Feb 29 — | USSM7.42 | I - 

G. T. Management (OX) Ud. 

watfflffwfem 
ffi^i 


Cresce n t Life Aswrace Co. Lto- 
14 New Bridge 8tmL£C4V6AU 01-3538931 



SSter 

Fixeinm... 

Tokyo—. 

American, 
kttroas tonal. 

Pr serves,, .m™, 
HighDDtrilxaMi—, 

CapajUBrnnli— I 


King X Shaxsm PLC 

52, CornhlB, EC3 m-JW?* 5 ® 3 

Bond Fd. Exempt — (£82.84 8MK-Q2B 

Lnoham Uft Assur. JIoMAL 
UngRwi Use, Kambroek NW4. 01-2035211 


HPI Pt ns toa s MsnagcuMtrt Ltd. 

48 Gracrctxirdi SL. EC3f>3HH.^ 01623 4200 

'** w wS'itoT t NM dmiSigrg L J " mmn* 

New Zealand Ins. (to. (UK) Ltd. gS^iSE. 

MiHland How, Southend SSI 2JS_ _ 070262955 r^n, Irt. 


Kiwi I 
UKI 


i liw. PUn .. 




JSS 



Property: 

Htgtfatgauiw^^ : 
inc. Fxd. fnL.u., 



iteWkiFA^ 

=---BMS 3 t!±: 

— ■ ImlnSi. Ptorrt w 
Do.SLFflMrahWJ 
Da. Pro.Fd. Mwehlfi. 
S.SStF4 March ML 





AUen Harvey & Ross Imr. Mgt (C.L) teteraftod 
J Charing Ctess, St Heitor. Jw, XI. 0534-73741 

aiBictfyswifla^dia gs fr™ 

N, American TS— -I 
IrdL Bond Fund 1 

Affiautt iBternational Oaltar Reserves • • Gwtmn Fmd Mamgera (IBM) ID 

»Mr6is^ H ^. 8 ^& 888 i iatar- 

Dhtribudon March 15 (OJXXfihn (14J2% pal. Sr1morolnH.6rth._BS3 1 CJj 



Assfcuraztoni GENERALI &P-A. 

P.O. Box 1321 St. P«rr Port, Guernsey. C-l- 

BKSIS^MM 333=1 = 

Granrihe Management United 

PO. Bex 73 St. Heller. Jersey. 053473933 

GraityUle Inv. Tst 116 36 67M-029I 4X1 

Hurt drollng day April 15. 

Gbikums Mahon Fd. Mgn. (Guernsey) 
PO Box IBS, St. Feter Pert, Cuerasey. 0481 23506. 

ind. Fund .51992 20« MAO 

Prices x March Oext dnnug Much IB. 

Homtro Pacific Fund Mgmt. Ltd. 

2110, Cuflnauqm Centra, Hong Kong 

i£SBSa 9 -BM H=i = 


Hmn tarot Fd. Mgrs. (C 

P.O. Box 66, Guernsey. 
iCamtai Rewrae Fd. ' 




talSits Fimd.._ 

Slii hw Income Fand*. 

Tram.Nal.Tros 

Intnl. 

Im. Equity 

im.Svcs.'A'SUS — 

liX-Sv^S-'B 1 ' 

Prices on March ... — _ . _ 

tExdudn WtM diary* do sort own. 

Henderwo Admin. (Guernsey) Ud. 
7New&,St. Peter Port^ Bonaqi D4W. 2654112 


si 

•• • • • ' - ' -y . ...-V-ivft- 

Guest Fund Man. (*»*y) W> 7' 

P 0. Bn 194, Sl Heitor. Jener- fi 11 

GuBter/HeinftW CommaditiB 

31*45. Gresham Sheet, EOV 7LH. 01-600 41W 

fcra F4lm. March LK5MM*MO^_4 —? .„■ 

Next dealing «e Ajxd 1. ‘Irttilm. ; j, 

f'V 

RBC hrvettment MuugtrS Limited •: 

PO Box 246. Sl. Piter Pun, GuernwT.0481-23C21. 

"-f 9 :=® 


InlL Caudal Fd.^_. 

North America Ft.. 

Ram hum Managers Ltd. ^ . ,. 

P.O. Bx. 1549, Hmitn, Bermuda. (809-29) 2-7979 
RAMINC0 Mjioi1_B8.W 9JS 4 — 


Richmond Life Ass. Ltd. 
4 HIS Street. Douglas, I AM. 
TbeSIhvr Trust ^,-.11566 
D..DtamundBd._p w 

74.9 


t 


■ i 


i ie 
i at 


UKGUtFund 1 

fStW 

Managed Fund 
Coin Trod — 


American (US cents). | 


11211+06) - 


Henderson Baring &wp 
801. GkMcester. 11, Pcdder, Hong Kang 

Japan Ftl Match 10— Z7 

Bond Fd* March ll_|ilSS&5® OT 4 KLOO 

*lndune of Prefhntoaiy Charge. 

Henderson Manageoient (Guernsey) Ltd. 
PO Box 71. St. Prier Pon, Guermey. 048126541 
J U5B 

HKL Samuel & Co. (Guernsey) Ltd. 

8 LeFebwe Sl, Sl Peter Port, Guernsey, C-l. 
Gufrmey TsL (2021 21625 -0.4( 3J2 

H9I Samuel Investment Mgmt. IntnL 
P.O. Box 63, Jersey. 053476029 

HS Channel l~ Fd. .. .11476 

H.S.Fxa.InLFd. »20 

Hi. Intnl GHi. Fnd...lU32 
Bta 2622. Bemf, Swnrarlaaf 

H. S. htrw Fif......|lfiS9 S 

CSF Fd.lBaiancrd. 

CrtttkMFar Easi 
ITF Fd. Ciechnutog 

I. C. Trust Managers Ud. . 

10, Sl. Georges SL, Dougin, loU 0624 25015 

InL CommoifltK Txt .197.6 103 B) | — 

Next drokiy <taf April 7. 

IGF Management Services Inc- 

eJo Reqmran, P.O. 8 m 1044, Cayman K. BWt. 

Internl.cmd Furxl (U5S5L5f 57321 1 — 

N.V. Intertaeheer 
P.O. Box 526, Delft, Holland 
Euwrabfa(OfferPce)l DFL6T56 

International Bond Trust 

2. Boulevard Ratal, Liimhbmni 

Nav March 12 .lUSSUUf ID 294-004] - 



053473939 



Save & Prosper International 

Dealing to 

P.O. Bex 73, St. Heller. Jersey 
Fixed Interest Funds 
OnmcIwwrfcBd,***. 

□Hr Fxd. InL 55 ? 

sL Fjxedrr t 

VenBord**t 

Up&iEnhFund H62 

Imenutl. Gr.** jUSJJW 

Far Emirrot 

North Amenejot. ...Jusias 

Sepnrt- — - 

Cueeuidlty Fundi 

•** March 15. —Marah 11 (Weekly deakngL) Drily 
deaUngt. 



V.1 


Schrader Life Group 
Emeniriu* Htxiw, Portsmouth. 
HUematnaal Funds 

“ iE^Ef 1 

; Fixed Into rest IlSfU 

Managed — 3?S4,. 

SMaoagcd JSSU62 


070527733 



International Pacific Inv. Mgmt. Ltd. 

P.O Box R237, 56, Pin SL, Sydney. Aim. 

Jewel >fl Equity Tst — IASU2 3201 ... I 7 50 

Investment Advisors, Inc. 

First iptmai tonal Plaza, Houston Trxw. 
Ftnomic Invest. Fd. ...1 — 0.691 — I..— 

UK Agents: Jaws FMev Tel- wftw J321 or 
>1: 01-247 846L 


Stentoerg Thomas Clarice Tel: 

Invicta inv e s t me n t Mamgemnst 

1 Charing Cross, St. Heller, Jersey. 0534 73741. 

Gilt Growth Fund — (£1108 11571 i J « 

GUt Income Fiaid. E&65 903] | 1329 


Jardina Fleming & Co. Ltd. 
46lti Floor, Connaught Centre, Hong 
J. F. Japan Tst... ' 

Do. (Accum.) 

J.F. Japan Small Co.. 
J.F.JawnTedxxikigy-, 

J.F.ESSeroTst 1 

Do (AccianJ... v 
J. F- Poe. Sea. (Inc-) 


Schrader Mngt Services (Jersey) Ltd. 
PH Box 195, SI. Heller. Jersey. 053427561 

Sterling Money Fd KUHM mott]*OKS7I — 

Next utecrtpllwi day Much 24. 

J. Henry Schrader Wtagg & Co. Ltd. 

120, Cheapslde, EC2. 01-58B4000. 





Do. (Actum.) — 

JLF.Jh 

Do. (I 

J. F. S.E.A.: 

St.*®?--- 

JF. Cor.ABd.F<f.(l 



Kong 


+Dim 


March 

: 01 « 


Schroder Unit Trust Mgrs. Int. Ltd. 

Box 273 St Peter Port, Guernsey. 04B12B7S0 

E"a c s&-~ 

£ Equity 

5 Fixed I Merest 
SEc 



Do. (Accorn.). - — 

Japan & PacHle CWTstJ 

MutATsT toext dealbn'm* 

Lmdoa Agents: Rett, neraiugft Co. Te 

Leopold Joseph & Sent (Guernsey) 

Hlrrel CL, St Peler PM^Gwymey. 0481-26648. 


LJ. Sterling Fuad.. 


14621 - 


Cortex* In te r nat ional 

10a, Bo u iewart Royal, Luxembourg- 

Cortexa Inbd. 1 11557567 HUH — 

Crugmomt Fhceef tot Mugra. f Jersey) 
P.O. Box 195, SL Heller, Jersey. 053427561 

^ WJ ^«Wed^. JMJ!0 

BWS Deutsche Ges. F. Wertpapfenp 
Gromhwgwcg 113, 6000 FrooMurt 
Itwcsta ~-.pD0.42 3L9SJ — 

Daft* Graup 

P.O. Box 3012, Nassaq, Bahamas 

pett-lnv. March 9^_WSJ2J2 ZJH ~_.J - 

LoadH AmtoS Wrirwort Bensoa. T8: 01,623 8000 

Deutscber luvatnumt-Trast 

Pnstfoch 2685 Biebergasse 6-10 6000 Frankftirt 

9 - 


King A Sbmoa Mngrs. 

\ Charira Cm. SL Hefier, Jersey. 
VaUey Use, SLPrtev Port, Grow. 
1 ThDwas Strart, Douglas, I.O.M. _ 



Scrhvgcour Kemp -Gee Mngmt, Jersey 

1. Charing Cross SL Heller, Jersey. 053473741, 
SKG Capital Fund .--[1637 168.71 — J — i 

SKStoromeFund ^71 9.40 

Sentry Assurance IntoMtiand UtL 
PO. Box 1776, Hamilton 5. Beneuda- 
Manaptd Fund lOtHSM 4.96101 —4 - ' 

Signal Life Assurance Co. Ltd. 

2C Secretary’s Lane, GfcnHar . 01035073097 

Growth Strangle Fd. .. (£235 235] 4 — 


InU. MlKLld. 

RSK 5 = VmMSOak r 


Singer & Friedtander Ldn. Agents. 

20, Caimon St, EC4. 01-2409646 

Dera*^ — rujnzd is 


ekafonds,. _ 
TnkyoTst March 1. 


Kkinwort Benson Group 

20, Fenchurch Sl, EC3. 

Guermey Inc 

Do. Acoin. 1 

K.B. Eurobond Fd 
ICB. Fir Eart Fd.__ 

K-BuGHtFuraf- 

ICB. foLBiLFd. Inc.. 

K.B. int Bd. Fd. Acc. 

ICB. Isitl- Fund 

K.B. Japan Fund. — 

ICB. Steri, Asset Fd. . 

ICB. UJ5.GwA.Fd.- 

Signet Bermuda. 

Tr an satlantic Fd—- 



01-6238000 Strategic Metal Trait Mnfrs. lid. 

f 3 HO Street, Douglas. I0M 062423914 

Strategic Metal Tr....|UHB.« 0-969] -0IH1J - 


1(L52 


am 


248 


Korea Intematfenal Trent 
Fund Man.: Korea Invest. Trust Ca Ltd. 


cfoV^da Cost. Ltd. Ktog 




I DR Value 


Dreyfus Interco ntin e n tal lav. Fd. 

P.a Bn N3712, Nassau, Bahamas. 

NAV March 9. — .IUSS2472 26J0( — J 


Duncan lowrie Inv. Mgt Ltd. 

Mrrv-ti, Vtotory H*e. St Peter Port, Goerraey. 0481 2B034 

SS-ssliS 

Cmaa & Dudley TsL Mgt Jm. Ud. 
PJ). Box 73, SUhriler, Jersey. 053473933 
E.D.I.C.T HlB-8 129.71 — J - 

The Engiwt Association 
4 Fore Street, EC2. 01-5887081 

EJL(i»nwFW.*._(M.4D ttiB 729 

Eurobond Hidings N.V. 

Melermul 15, WUtemstad. Curacao. 

Euro Hldgs EUSEBLS 2L2R — J 950 


The Korea Trait 

Dadien invustment Trait Co. Ltd. 

FKI Bui Minsk 1-124 ToUfcHjong, Seoul, Kama. 
NAV March 13 (Wm 11013) USS15J55) 

Lazard Brothen & Ca. (Jersey) Ltd. 

P.0. Box 108, 5t Heller. Jersey, C.I. 053437361 

,:,ia 

Lar. fires. InLAssef-lftxinM i -- J*I»S 33! 
Lal Bras. InL Asset -I 001004679 Hl2«l Hi® 

Lloyds Bk. (C.l.) U/T Mgrs. 

P.O. Box 195, SL Heater, Jersey. 053427561 
Lloyds TH.OVas — J74J .^79^,..-.| 164 

l tehTnm^.^^ H ^|-..... J 3363 

Uoyds Bank Intornottonti, Geneva 

P.a Box 438, 12U Geneve U (Switterfond) 

ffi&issdn mils 7 ^s 

Uoyds Bank InternaUanaJ. Guernsey 
P.O. Box 136, Guernsey, Channel Islands. 
Alexander Fund USS10J3 _l — 4 - 


Stronghold Management United 
P.O. Box 315, SL Heller, Jersey. 0534-71460 

Commodity Trust 1134 01 14L06] - 

Smrinvest (Jersey) Ltd. 

4, Hin Sl, Douglas, toe of Man 062423914 
Cooper Trust (0211 1274I+0JW - 

TSB Trust Funds (C.U 
10 Wharf 5t, SL Heller. Jersey {Cl}. 

TSB CUtFund Ltd. — “ 

TlB^tFdWJud. 

Fuod..j5T.l 

T. nen sub. Ay Much 24. 

Tokyo Pacific Hofdtogc N.V. 

Intbnls Management Co. N.VL, Curacao. 

NAV per share March 15. USS7SJL 

Tokyo Pacific Hbfgs. (Seaboard) N.V. 
Intlmh M an agement Co. N.V^ Cwacaa. 

NAV per dura March 15. USS54.95. 




TyndaM Graup 
Z New SL, SC Hefier, 


053437331/3 


Mntii 8. 


— 1 s.6. Eurapt Obligations SA. 

E 

_ Euroue-flhfigttluBS USS4347 l+osa LB7 

- Eurstax hmstroents Ltd. 

= 0727 33166 

-•] Z Eurotax Iw. Ftato — (304,7 1103] — 4 — 

F ft C .Momi UtL bn. Advisers 
1, Laurence Pounbtoy KB, EGA. 01-6234680 

FkfeBty totarwattowd. 

E Wiser’ 


Urals Dreyfus Commodity Fund 

eio Trustee, PJ). Box low. Cayman Wands. 

Feta 26. Value per UnK USH94L48. 

M & C Grotm 

Three Quays, Tower Hill EC3*&BQ. 01-626 45B8 
A&iMic Ex. March HbJUSM9* 52«rtJIflf — 
Austrato-Ex. MarehlC umM — 

Gold Ex. March 10-_ USgtaB 224W» .... J 14.« 

(Accux. Units) UsniS -■■■J 1J47 

I stand 174.7 MSa 4fi.ll 425 

(Accum Units) 1279.7 ZKS +OJJ 4J5 

Management International Ltd. 

Bk.nl Bermuda Bldg, Bermuda. 809-295-4000 

•tam ssl la^’ 

NUBand Bank TsL Carp. (Jersey) Ltd. 
2B-34, HID SL. SL Heitor, Jersey. 053436281 

s&sssni^isL. 

Samel Montagu Ldn. Agents 
134.0klBrtradSL.EC2. 01-5886464 



taqMHb 

FiaedlM.lMl.Ffb.ir 
Comdty.lmLFeh.X8, 
Pacific Inti. Feta. 18 ~i 


M. G. Tyrrell & Co. (Jersey) Ltd. 
P.a Box 426b SL Hahrr, Jersey. Cl. 
Onac 1 - WSHLOO — | 


Throgroorttn Ave^ Ugfcm - 


&rtco imsL Ford 





sxfjQSTfi - 

U7SUg.Res.Mar 

Minerals, OUs Res. Stirs. Fd. Inc. 

P.O. Bn 194, SL Heller, Jersey. 0334 27441 __ 

MORES March 11— .II1SSM5 933] .—4 — Select Ml Feta 


Uwims-I n vt fcti p ent -GeseUichaft ntbH 
Porifath 16767, D 6000 Frankfort 16. 

UnHoods— 

UMrak_. 

OHreak. 

V.CJL Fi nan c i a l Managemnt Ud. 

42, Essex Street, London, WC2. (0-3536845 

PanAnrar.OfoFd 1U5S52B - I — 

For Van Casern ft Assoc, see VXJL nnandri. 

Vtanbrngh Find MngmL ML Ud. 

2B-34 HiU st, St Hahee, Jersey. 0534.V»?ia 
VteuBh Currency W4U02 UBfl-04| 947 

S. G. Warburg It Co. Ltd. 

30, Gresham Street, EC2. 01-6004555 


Mere. Mny^a^gr 15 1 


Murray, Johnstone (Inv. Adviser) 

163. Hope SL, Glasgow. CZ 041-221 5521 

fisMfte&sJ us ^ 4? 

Pacific Fund Feh 28.. [ 

Nat Westminster Jersey Fd. Mgrs. Ltd. 

23125 Broad Sl, SL Heller, Jenay. 053470041 
togh Income F«xl~J47.6 4Mj *20l l«4 

masnsFira •ml da 

•Sufi thy nety wan. 


Warburg ImesL MngL Jrsy. Ltd. 

7 Library Place, Sl Helier, Jiy. Cl 0S34 37217 

Merc. Cwn. March 9. KJ5.02 15J 

Mtr Far 7 1 Mar 10- - f 
MrtS T«..March4— f 

m seaead 


Tran.MafthJ 

Wanfley Investment Services Ltd. 

4th Floor. Hutchison House. Hong Koog 
WarteyTriist,.— „gflgajg ^.p-tura « 



Negtt SJL 

10a Boulevard Royal, L uxe mbo u rg 
NAV Feb. 19._ — — IUSJ920 - .| 


Wridhy I 


i As. Fdb 


WanSey Bond Trait - U| 
WanHeyJapanTroa.il 


—I - 


NJEJ- Intermtim) Ltd. 

PJ). Bax 119, SL Peter Port, Guernsey, CJ. 



World Wide Growth Masaeamwt* 

10a, Bouhirord Royal, bntmtaourg 


Wren Commodity _ 
IQ, Sl George^ 8 l, Darofos 


Invert. Ltd. Ldn. Agt*. 

7, SL Mary Axe, London, EC3. 01-2833531 

cc - L, %gL$4i 
..-.J fi-10 
(Fir East) Ud. (aMU 

iHTis 


Pacffic Bartn Fund 
10a Bootomd Ftoyai. L ux e rab ourg. 
NAV. 


Preclout Metal Fuad, m 


to*. Adi.: nTTk UtfSSjan. 

Phoenix Iittaraafiatai 
P0Box77,SL Peter Pvt, Guern. 048126741 

Infor-Dollar Fund — [USC.W 3.171 

far East Fund usfeta ZWi 

InU. Cwrency Fund.- USL75 18N 
Dollar Fxd. Int. Fund.lusZbS 2J9| 

SUr Exnpi GDt Fd-IElAl L74| 

Pnavftfence Capital Life Au. (C.U 
PO Bta 12L St Peter Port. Guetrwy 0481 2672619 
Sterling Bond Fd.. MW |453 47.” 

_ " f Fd, — |J48 _ • 7|j 

; dejUiriTMkta’l?. 


i Cnxfy. Fd. J 



2‘uiuiv LMtw ru 

ffiaas K_ r 


NOTES 

Price* are In nenor mien otherwhr bxBcated. 
Yiekb % (shown in last column) allow (or all buying 
eweraeL a Offered prices metode all exMte. 
b Today’s prim, c YWd based on offer price. 
5 Eai«wL o Today) opening price, 
h Distribution free of UN taxes, p Periodic 
premium Insoraace plans, i Siitofe premluni 
toHHwee. x Offered prk* todudet alt expentn 
.except agent’s commhston. j Offered price Iwliflfec 
»fl expenses if hoogJX UroughrnanagerLZ Pryvleas 
f Guernsey gross, a SutpemtaLx 
tortfY tax. t Ex-srtdtvfeioiL 
Only mailable la rtariiafafe bodies. 


dr I 


i 

. J 


?S,m‘o35cr »? p.re 5,5 S B S 5 ! 





Financial Times Wednesday March 17 19S2 


INCOME INVESTORS 

Three attractive ideas 
from Fidelity 

Find out more — phone 01-283 9911 


FT SHARE INFORMATION SERVICE 


FOOD, GROCERJES^-Confc 

swt | ** M.S {nrfwtfflE 

1Mjl « jq ttJS « W 


Men 

tot I M- 


14R7 W-29 
5.72 MM 
7.45 1369 

13.76 1420 
12M 13.90 

M-50 
1389 14.40 

11.77 M35 
12.18 1420 
1307 J4-44 
13-52 14J7 


59J,|55 [Do- A (£50 44.). 

Five to Fifteen Years 


13.99 

13.98 

1167 

14.05 


101)2 
67 

% iumi 13.99 1 m 


Do 4pc Mixed Ai5- 

HtflQ. *24 As 

^awKifpcuan 

Iceland tfwc '8188 




m 


! — i 152 f 77 (Lifcrwloft 5^3 


Au-BnlKi lZljp. 


68 

5 ? 

24 

37 120 

179 
77 






I 8291 1229 


rfr 


e 

85 

& 

9 

78 
*% 

75>, 

84% 

417, 

SA 

981, 1 79% |Ezch. 




rrt 


1321 
14.17 
1261 
14.04 
13.76 
1325 
1320 
13.50 
13.76 
1394 

13271 42>i 
13211 

50% 


12.96 { 12.95 


Undated 


$ 

20%|-£ 
►% 


Rockwell IrrttSl 


9tt 


FT 


*«£ 
Pin 
S2.40 
»%[♦% 1*220 


94 

-as 

251 
42 
178 
£139 
166 
94 
•182 
53 

363 
. ,«S 

7.6 174 
52 235 
5.4 ( 44 

364 
298 

S3 
103 
72 200 
5.9 68 

6.71485 
79 
62 213 
6 8 68% 

9.7 114 

- 183 

6.0 128 

3.8 252 
9J 269 

5.7 m 

6D 

3J 


1 


iIF 


EW-Pr.lflp 


EH 


375 

IIV 

45 124 
412 
77 
23 
*285 

103 60 

65 33 


Hll I 

550 

9 
*102 
81 

gfa 
225 

2 

43 


fflf- 


T?r. 


gj. 
88% 

102 86 
95% 80% 
IMP* 97% 
99 93% 

^ !g 

79% 
93 186 
26 21% 
U0% 94% 

S* 

S 


-nf- 


m 




LOANS 

Public Board and Ind. 

66 I 57% lAgric ML 5pc "59-89 1 64 -1 ) 7.94 13.00 

29 % 23% ftSt- Wtr. 3pc B 1 28 lad 20.48 12R3 

14 97 |U.S.M.C.9pc 1982-1 M7 8 63 — 
99% | 91 | Do. triftoul Wtamts.| 99% . — I 9J0 — 


126 
*245 

T 

87 
159 
99 
86 
178 
29 

* 

iro 
82 

T 

165 
48 
41 
152 
8 2 33 

5.7 104 
0 b 86 

LB 101 
17 295 
5.9 10% 

r 9 

43 
8.4 
3.6 
7.0 

4.8 


115 
43 
|rw 

rw/srt we ^ 

| 33} 8.0| 3.8 82 

- 11.7 - 172 

y 9.7 4 172 

10.6 23 156 
— 3.6 — 117 

— lOi _ 90 

— 0.7 — 122 41 

— 6.6 — 91 50 

29 9.2 3.7 80 50 

SJ 5.1 32 16% 8% 
<}5J 7.0 29 90 60 

— 4.0 — 31 19 

— 102 — 67 22 

— 120 % 


Heywood WtrtS. 

Howmsuiop 


A IINANCI ALTIMES SURVEY 



17 APRIL 1982 J 

A - ... 

The Financial Times is planning to publish a survey on 
- Personal Financial Planning. The provisional date anij 
editorial synopsis are set oat below , 

•• r " 

w 

l 

INTRODUCTION Persistently high real returns have 1 

forced investors to change their habits. Growing attention 1 

paid to short-term instruments and specialised funds, such 5 

as currency and commodity syndicates. Investor protection 

—a look at the Department of Trade’s new rules for licensed 

dealers and professor Gower's report. 2 

p 

i 1 

k r 

Editorial coverage will also include : ^ 

• 1- 

r 

REDUNDANCY J 

i ■ 

t 

INTERNATIONAL INVESTMENT a 

BUYING A HOUSE 


Non. Brick 5CD 
Phoenix Timber 


■1 

sa 


■ 

1 


rtri 




v 
33 
233 
68 

•»* 

11 

33 
US 
77 

50 38 

4% 2% 

140 30 

20 W 
128 81 
42 22% 

51 40 

19 B 
55 21% 

166 132 
156 92 

*101 52 
184 130 

52 33 

32 17 

30% 12 

51 


CrwiMe Grain- 


i Sn 


*S ,; 

iM 

t 
s? 

29 
42 
35 
90 
26 
28 16 
75 44 

183 122 
130 40 

227 32 


47 22 

115 70 

31 14% 

150 84 

188 127 
20 9 

240 78% 

215 133 
223 IS 
217 107 
11% 7 

356 230 
56 3B 
111 63 

35 13 

169 118 
15% 10% 
10 % 6 
74% 48 

81 47- 

58 43 

82 38 

28 14 

65 41 

146 95 
60 28 

• 60 15% 
IB 10 

34 17 

28 18 
44% 29% 
15 9 

14% 9 

350 

35 
278 
127 


i 


« ferine* of Wife! 
25 


45 I 28 I AAA. In* 


42 

24 

t3.0 . 
42.42 1 L 
2.75 3. 

4.8 X 


8.0 3 < 

5.75 4 


m 






K Stone 10p 


Wtiit'gh'm 12) 


l3otT(ConnoI|yJ 


iTr'l 


4 it 

**8 Iff" 

MIS 


m 


FH f 


\m?\ 


Til 


96 
25 

66 | Bilim (J J 
22 fax* Arrow 
94 
78 

52 Bodycote Inti- 
14 Bogod PH ‘A* Mp. 

48 Booker McC 

128 Boot(HMiy)50p 
168 


mm 


13 
23 
86 
58 
123 
15 

25 (Utd. Wke Group 

129 I Vickers £1 

112 I Victor Products 
80 
58 
64 
15 
6 

18% 

S 
44 


PLANNING FOR A LIFETIME 


INDEX-LINKED INVESTMENTS 


Copy date: 2nd April 1982 

Tar further information and advertising rates please contact 
Guy Mainwaring-Burton 

fi nancial Times, Bracken House, 10 Cannon Street. London EC4P 4BY 
lfefcOI-248 8000 Exfc.3606 Telex:8S5033 FINTIM G 

Hie size, contents and publication dates of surveys in the Financial Times 
are subject to change at the discretion of the Editor. 


18 
25 12 

142 98 

295 112 
65 36 

246 137 


£79.% 

95 ICoante Gram 
46 
40 

& 


32% 
11 6 
28 10 . 

112 60 1 

32 17% 

22 % 12 
310 


74 
*132 
158 

163 
78 

303 
150 

*9% 

258 
» 

73 
82 
131 

205 
118 
68 

450 
28% 

58 
102 
57 
44 
210 
130 
280 

232 145 

206 90 

32 17 

80 55 

50 10% lPbher(A.)5p_. 

86 5) 

*122 34 
235 98 

164 92 

320 75 

86 60 
114 46 

*256 
*57 37 

197 123 
80 55 

212 145 
210 90 

96 82% 

* 

165 


14 

12 
80 
29), 

; is 

79 

218 

69 
88 
35 
10 

70 

‘if’ 

57 22 

38 23 

58. 31 
65 25 

130 95 


Tti 


9 


»R{ 


nParklOp. 


Home Fans lfln . 


3.4} 641 51 I 71 


05U 

68 85 
US 135 
8.9 109 
198 250 

5.0 -13 

266 99 
58 64 
- 508 
(52) 45 

6.1 70 
25.9 263 


61 )•% 13.86 j 


— - 60 
3.4 *1 140 

, — <6-8 vn 

8-6} 9.11 (48) 27 


8 5 

16 6% 
112 60 
77 50 

165 97 

£121 £93 

£176 £102 
56 32 

126 58 

a bI 

J! « 

13 5% 
69 44 

139 88 

48 22 

71 40 

.55 26 

162 40 

192 86 

47 16 

77 49 

163 68 
133- 39 

» 48 

420 
160 
226 

15 | * 
£2oa|n2% 
*61 16 
44 .| 35 
281- . 


'll 

































































































































































































fra 

■V 

|Srt 

IMl 

tc 

4t7Ta 

L& 

in 

| _ 

le 


a- 


st 

5.4 

n- 

” 

to 

78 


5.7 


28 

m 

= 1 

ie 


m 

*“■ 

ie 


ie 

1L5 

□f 

87 

26 

ie 

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— 1 

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57 

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va. 

28 1 

nt 

_ 

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— 

ts 

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52 

m 


to 



30 

22S +25 
7 
58 
70 
265 
413 
£95 
21 
15 
41 
340 


NOTES 


Uidess otherwise ImfcatHt, prices and net tfnMmfc are in pence and 
drnoaliBtkws art 25p. Estimated prter/e anJtojs ratios and cowers arc 
based on latest annual reports and acorns and, where possfek,** 
updated oo hrif-yeorfy figures. P/Es are calculated on “net" 
distribution basis, earnings per stare bring computed on profit after 
taxation and ravel ieved act where applicable; bracketed figures 
indicate 10 per cent or more tffference if caladated oo “nfl" 
distribution. Covers are based op "iwxtamn” dtarUadtaa; ttds 
compares gross dividend costs to profit after taxation, encoding 


ACT. Yields w based tn okMc prices, are gross, adjusted to ACT of 
30 per ceot and aUow for vabio of declared distribution and rights. 

• "Tap ” Stock. 

* Higln and Lows marked ths bane been adjuted to aUow far rifftts 
Issues for cash. 

t Interbfi since inoeased or resumed. 
t Interim since mixed, passed or deferred. 

^ Tax-free to nonresidents on application. 

♦ Figure* or report awaited. 

4 tiSM; not lined on Stack Exctange and company not subjected to 
same degree of rendition as listed seewtties. 
tt Dealt In under Ride l£3{ZXa); not feted on any Slock Exctange 
and not subject to any feting requirements. 
tt Dealt in under Rule 163(3). 

* Price U txae of smaeaoaa. 

9 Indicated dividend after peodtag scrip aad/or rights taum com 
relates to previous tWiAnd or forecast. 

♦ Merger bid or mtganisation in prograss. 

4 Not comparable. 

4 Same Interim: reduced final and/or reduced earnings Indicated. 
$ Forecast dividend; cater on earaings updated by latest interim 
statement 

t Cover allows for comersiao of stares not now ranking for dMdemft 
or raokkig only for re sulte d dividend. 

* . Cover does not allow far stares wMeh may also rank lor dtadend at 
a fntw date. No P/E ratio usually provided. 

U No par value. 

6$ Yield based on assumption Traaswy BW tote stays unchanged until 
matioity of stack, a Tax free, b Figures based on prospoctus or other 
official estimate, c Cents, d Dividend rate paid or payable on part of 
capital cover based on dfridtod on fuff capital. ■ Redemption yield, 
f Fht yiekL g Assumed dhMend and yield, b Assumed dMdmd and 
yield after scrip taut. 1 Payment tarn cental sources, fc Kenya. 
m Interim higher (baa previous total, o Rights issue pending, 
q Earnings based on preliminary figures, * Dividend and yield exclude a 
spedal payment, t Indicated rintfend: cover relates to prev i ous 
dMdeod, P/E ratio based on latest acouai earnings, u Forecast 
dividend: cover based on previous year's earnirgs.v Tax free op to 30o 
In fbe £. y DMdmd and yield based oa ranger terms, x OMdendwnd 
yield indude a spedaf payment Cover does not apply to special 
payment. A Net dbridend and yiekL B Preference dMdeod passed or 
deferred. C Canadian. E Minimum tender price. F Dividend and yield 
based on pro s pec tu s nr other official estimates for 1981-82. 
6 Assumed dMdmd and yield after pending scrip and/or rights, 
issue. M Dividend and yield based on pracoecius or other official 
estimates for 1992. K Figures famed on prospects or other official 
estimates for 198I-8Z. M OMdetH aad yield based on prospe ctus or 
other official estimates for 1983. N DMdeod and yWd based on 
prospoctus or Otter official estimates hr 1982413. P Figures based on 
prospectus or other official estimates for 1992. ft Crass. T Figures 
assumed. Z Dividend total to date. 

Abbreviations: xl ex tfividend; a ex serip issue; r ex ri$fc; a ex 
all: re ex capital ifetribution. 


“Recent issues” and “Riahts” Page : 

lt4 ras wv fei l b iwBrtie to irtrf Company dealt in rni Sfaak 
| Eztfaopn ttrm&out fl» ilnftvcl Kingdom for a fee of £600 
9 " Man far each security 
















































































































































































































































34 



“Ab&terwayi&bu&F 

01-9428921 


Wednesday March 17 1982 



FLYGT 


i'SUEMtRSLGl.E’t 
' 0C02.-24132’ 


Brezhnev offers freeze on SS-20s 


THE LEX COLUMN 


BY REGINALD DALE IN WASHINGTON AND JAMES BUCHAN IN BONN 


WESTERN leaders yesterday 
criticised a sudden announce- 
ment by Mr Leonid Brezhnev, 
the Soviet President, o£ a 
freeze on further deployment 
oC SS-20 intermediate-range 
nuclear missiles west of the 
Ural Mountains. 

• Mr Ronald Reagan, the U.S. 
President, said it was “not 
enough.” The White House 
described Mr Brezhnev's 
“unilateral moratorium” as 
neither unilateral or a 
moratorium. 

• Mrs Margaret Thatcher, the 
Prime Minister, told the 
Commons that it left the Soviet 
Union with “total superiority” 


in medium-range weapons. She 
said the range of SS-20s meant 
that even east of the Urals 
they were still a threat to West 
Europe. 

• In Bonn the West German 
Government said the announce- 
ment was of value only if it 
meant Moscow was prepared to 
negotiate reductions in the 300 
SS-20s they have already 
deployed. 

Mr Brezhnev announced the 
freeze during an address to the 
Soviet trade unions in Moscow. 
He said Moscow wanted to set 
a good example and ease pro- 
gress towards an agreement 
with the U.S. on a major reduce 


tion of nuclear weapons in 
Europe. 

He said the freeze would last 
only until the U.S. began “ prac- 
tical preparations ” for its own 
deployment of 572 Pershing-2 ' 
and Cruise missiles in Western 
Europe. 

He warned that if this deploy- 
ment went ahead, there would 
be a “real additional threat” 
which “ would compel us to take 
retaliatory steps.” 

Deployment of these missiles 
in Britain and West Germany 
is scheduled for late next year, 
“practical preparations” would 
have to begin earlier, meaning 


Moscow could resume SS-20 
deployment at any time. 

The announcement came on 
the same day as Soviet-U.S. 
talks in Geneva on curbing 
medium - range weapons in 
Europe adjourned for two 
months. 

The Soviet Union, arguing 
that there is already an East- 
West balance, has offered a two- 
thirds cut in existing arsenals. 

In November, president 
Reagan, seeking to correct what 
the West sees as a dangerous 
Soviet superiority, proposed the 
so-called “zero option.” Under 
this Nato would scrap its plans 


Guinness Peat to sell Unitel stake 


BY WILLIAM HALL AND IAN RODGER 


GUINNESS PEAT, the troubled 
commodities and banking group, 
has agreed to sell its 30 per 
cent stake in Unitel Inter- 
national, the U.S. money brok- 
ing and computerised financial 
services operation, in a deal 
which will raise over £18m. 

Nearly half the Guinness 
stake is being bought by Exco 
International, the money brok- 
ing company, raising Exco's 
holding to 49.9 per cent. Cavzer. 
Gactmore, a subsidiary of 
British and Commonwealth 
Shipping, is taking another 
R per cent of Unitel to add to 
its 24 pA- cent stake and the 
executives of Unitel are buying 
S per cent, raising their stake 
to 18 per cent. Finally, unit 
trusts managed by Save and 


Nestle bows 
to critics of 
baby milk 
marketing 

By Anatolc KaJetsky ia 
W ashington 

NESTLE, the world’s biggest 
producer of breast-milk sub- 
stitute baby foods, yesterday 
bowed to a 10-ycar inter- 
national campaign against 
aggressive marketing of baby 
milk in developing countries. 

It announced that it is to 
stop advertising and sales 
practices which discourage 
breast feeding. 

Mr Rafael Pagan, president 
of the Swiss-based group’s 
co-ordination centre for 
nutrition in Washington, said 
yesterday that the company 
was voluntarily complying 
with the World Health 
Organisation code and had j 
issued guidelines which 
Nestle’s subsidiaries around 
the world would follow. They 
are designed to restrict 
promotion of breast-milk sub- 
stitutes, stop mass media 
advertising in Third World 
countries and discourage the 
use of infant formulae except 
where mothers have the 
benefit of medical consulta- 
tion. 

Nestle. whose sales of 
infant formulae are estimated 
at between S3 00m (£ 1.66m) 
and S400m a year, has been 
fighting a rearguard action 
against claims that breast 
miik substitutes pose serious 
health risks in countries with 
contaminated water supplies, 
low levels of health educa- 
tion and endemic diseases, to 
which immunity can be trans- 
mitted through mothers' milk. 

In addition, it has been 
alleged that the decline in 
breast feeding encouraged by 
Infant-formula advertising in 
the Third World. has 
increased birth rates because 
breast feeding can act as a 
natural contraceptive. 

Since 1977 religious and 
consumer groups have been 
trying to organise boycotts of 
Nestle products in the U.S. 
because of its dominance of 
the infant formula markets 

Continued from Page 1 

Inmos 

the NEB’s stake to Jess than 50 
per cent, in line with the 
Government's privatisation poli- 
cies. They would also raise 
fresh funds that should enable 
Inmos to ejrpand its operations, 
either in the UK or abroad. 

The 25 per cent of Inmos 
not held by the NEB is held 
by its senior employees includ- 
ing Dr Richard Petritz, its 
chairman, and two other 
founder-directors. 

It is producing micro-chips 
from a factory in Colorado 
Springs in the U.S. but fis 
future depends on selling 
advanced 64-K random access 
memory chips which ir is to 
start producing later this year 
in Newport. 

Prices have fallen sharply in 
rhe past year and Inmos will j 
face tough competition from 
other U.S. and Japanese 
producers. 

The NEB’s success in attract- 
ing private sector investors will 
depen 6 on beating this 
competition. 


Prosper are buying 2 per cent 
of Unitel. 

Unitel is the holding company 
for Noonan, Astley and Pearce, 
a New York money broker. In 
October, it acquired a 90 per 
cent interest in Telerate, which 
operates a computerised market 
information service m ainl y in 
the U.S. 

The Unitel sale marks a major 
reversal in strategy for Guinness 
Peat, which until November had 
been increasing its U.S. invest- 
ment. Yesterday Guinness Peat 
reported a pre-tax loss of £7.4m 
for the six months to end 
October 1981 and omitted its 
interim dividend. 

Including provisions estab- 
lished for further rationalisa- 
tion. the group made a loss of 
£13.47m after extraordinary 


items, which compares with a 
£1.5ra profit in the comparable 
period of last year. 

Its management blames the 
“disastrous losses” in its 
Chicago animals fats venture 
for part of its decline. The 
Chicago venture lost £4m in 
1980-81 and another £4. 9m in 
the latest period. These losses 
occurred at a time when the 
group's commodities profits fell 
from £4.9m to £250,000. 

The London Stock Exchange 
marked Guinness Peat shares 
lOp higher to 6Sp on the view 
that the worst is now over. 

Exco indicated in November 
when making its spectacular 
stock market debut, that it was 
excited about Telerate's pros- 
pects and would take a larger 


stake if the opportunity arose. 

However, it has limited the 
increase in its holding in Unitel 
to 13.9 per cent so as not to 
bring it over 50 per cent of 
Unitel, at which point it would 
have to consolidate the com- 
pany's results .and balance 
sheet. 

Mr John Gunn, managing 
director of Exco. explained that 
Unitel has a S40m (£22m) loan. 
If this was taken into Exco's ac- 
counts. it would leave the total 
group with a deficit on reserves. 

Exco financed the purchase of 
its increased stake in Unitel by 
a vendor placing of 2.S75m 
shares at just under 200p per 
share. 

Guinness Peat results Page 20 
Exco, Page 21 


Tricentrol joins bidding for CCP 


BY DUNCAN CAMP BELL-SMITH 

THE EMERGENCE of a 
counter-bidder has started a 
battle for control of CCP North 
Sea Associates, the London- 
based oil exploration company, 
which last month agreed to 
recommend that its share- 
holders accept a £15m bid from 
Charterhouse Petroleum, an- 
other UK oil group, with North 
Sea interests. 

The second bid for CCP has 
been made by Tricentrol, an 
independent oil group also 
with interests in the North Sea 
as well as the U.S. Trieentrol’s 
bid values CCP at £15.26m. 

CCFs board and its advisers. 
Morgan Grenfell, decided on 
Monday to withdraw their sup- 
port for the Charterhouse bid. 

Shareholders in CCP will 
cow be fold that their directors 
recommend the bid from 
Tricentrol. The terms were 
negotiated in a series of meet- 
ings over the weekend and 1 


were made conditional — as was 
Charterhouse’s bid — on support 
of the CCP board. 

Tricentrol is offering TOOp 
cash and seven ordinary shares 
for every 10 ordinary shares 
of CCP. By the close of the 
trading last night, Tricentrol’s 
share price had slipped to l"2p, 
valuing its offer at 190.4p per 
CCU share, slightly above the 
Charterhouse bid. 

Morgan Grenfell said that 
among advantages of the new 
bid were a higher yield on 
Tricentrol’s shares compared 
with Charterhouse’s and the 
fact that Tricentrol's offer was 
not conditional on approval by 
its own shareholders. The bid 
by Charterhouse Petroleum— 
which is 48 per cent owned by 
the Charterhouse Group — must 
be approved by Charter 
Petroleum’s shareholders. 

Mr David Roberts. Charter- 
house's financial director, how- 


Cable TV go-ahead 
expected next week 


BY ELINOR GOODMAN 

THE Government is expected 
to give the go ahead on Monday 
to the widespread development 
of cable television. A paper is 
to be published setting out the 
possible areas for development. 
At the same time the Govern- 
ment will begin consultations 
over the framework which will 
be necessary to oversee the new 
industry. 

Earlier this month, the Govern- 
ment decided to authorise in 
principle the start of direct 
broadcasting by satellite in 1985. 
The proposed satellite system 
has major implications for the 
cable industry as cable tele- 
vision networks could take 
programmes supplied by 
satellite. 

The move on cable television, 
discussed by Ministers yester- 
day, could stimulate the rapid 
development of a £lbn a year 
industry financed by the private 
sector. Mr Kenneth £Jaker, 
Minister for Information and 
Technology, has described the 
decision as the most important 
the Government will lake this 
year. 

The Government is apparently 
anxious to see the new system 


get off the ground as quickly 
as possible, and is therefore ex- 
pected to announce its readiness 
in principle to lift the existing 
restrictions on the use of cable 
before it has decided on a new 
regulatory framework. 

At present cable television 
operators may transmit legally 
only programmes broadcast by 
the BBC and Independent Tele- 
vision networks. A report pre- 
pared by a panel of independ- 
ent experts at the request of 
the Prime Minister concluded 
that cable operators should be 
free to use wharever material 
they chose. This could include 
subscription television, paid 
advertising and two-way elec- 
tronic information services. 

The report urged Lhe Govern- 
ment to announce “ in broad 
outline” its future policy 
towards cable television by mid 
1982 so as to allow the industry 
time to invest in new systems. 

It also said that a review 
would be necessary of the 
implications of deregulating 
cable television and that a 
decision would have to be taken 
on whether to set up a statutory 
body to oversee the cable 
industry. 


ever, stressed the similarity of 
the two bids in almost every 
other respect “Our bid is by 
no means out of court,” he said. 
“ Our prica remains competitive 
and wc see no reason to con- 
sider lifting it at present" 

The Charterhouse bid was 
initially worth 192p per CCP 
share, based on 50p cash and 
two Charterhouse shares. Its 
value had fallen marginally by 
Monday but recovered yester- 
day when the announcement of 
the company’s preliminary 
results helped lift the shares 6p 
to 70p, leaving Charterhouse's 
bid only just below Tricentrol's. 

Mr Graham Hearn e. Tri- 
centrol’s chief executive, said 
his board and its advisers, N. M. 
Rothschild, had offered “a 
sensible price.” 

CCP's shares, which are 
traded on the Unlisted Securi- 
ties Market closed up 12p at 
183p. 

Continued from Page 1 

Tokyo 

remains Japan's dull economic 
outlook. 

Japan's economic planners 
have been jolted into action by 
the news that GNP shrank 0.9 
per cent in the last quarter of 
1931 — the first negative quar- 
terly growth since early 1975. 

While the fall has been put 
down to falling exports and 
some recovery of imports, the 
Government believes its key 
problem now is to stimulate 
domestic demand — gradually 
recovering after the long reces- 
sion which followed the 1979 
oil crisis. 

The problem is that boosting 
budget spending would cut 
right across tbe Government's 
strong commitment to support- 
ing Japan's huge budget deficits 
and any fail in interest rates is 
being ruled out while Japanese 
interest rates remain signifi- 
cantly lower than those in the 
U.S. 

Bringing forward a major 
portion of public works spend- 
ing into the first half of the 
year — probably about 75 per 
cent — appears to be the only 
measure the Government has 
been sole to think of so far 
which does not cut across other 
policy commitments. This “ for- 
ward loading.” however, may 
not be nearly enough to pro- 
duce the level of demand con- 
sidered necessary. 


to deploy Pershing-2 and Cruise 
missiles and the Soviet Union 
would dismantle its SS-20s. 

U.S. State Department 
officials argue that with 300 
5S-20s now deployed the Soviet 
Union is near to what Nato 
believes was its original target 
figure. The U.S. is now finalis- 
ing details of the position with 
which it will enter talks with 
the Soviet Union to reduce both 
sides’ strategic weapons. These 
talks were originally expected 
to begin this month but . were 
put off by Washington because 
of developments in Poland. 

Thatcher strategy. Page 10 


£89m bids 
referred to 
Monopolies 
Commission 

By Ray Maughan 

TWO references to the Mono- 
polies and Mergers C omission 
yesterday blocked takeover bids 
worth almost £90m. 

The contested £76m cash and 
share offer by Rowntree Mackin- 
tosh for the biscuit manufac- 
turer. Huntley fir Palmer Foods, 
and the agreed £I2.8m cash bid 
by Imperial Chemical Industries 
for the paint group, Arthur 
Holden & Sons, are to be investi- 
gated by the Commission. It has 
to report within six months. 

Under be terms of the condi- 
tions imposed by ICI and Rown- 
tree, both bids have lapsed. 

Huntley lost a fifth of its 
stock market value yesterday as 
the shares dropped to 84p. which 
coTnnaTes with an effective price 
of 105p per share offered by 
Rowntree. 

The York-based confectionery 
group expects to decide by the 
end of this week whether it will 
drop the bid entirely, or 
whether it will wait for a 
favourable report by the Com- 
mission. Its original bid was 
due to reach its first closing 
date tomorrow, and Rowntree 
had previously acquired a 23.5 
per cent stake in Huntley. 

In each instance, the bidder 
had faced the possibility of a 
counter-offer from a third 
party. 

International Paint a subsi- 
diary of Courtaulds. acquired a 
12 per cent interest in Holden 
last January, at 150n per share, 
but a subsequent offer of 180p 
from ICI was sufficient to , 
secure agreement by the Board 
for 35 per cent of the equity. 

Huntley had found what it 
regarded as a potentially more 
amenabei suitor in Nabisco 
Brands of New Ywk which, 
after many rumours, started 
talks with the biscuit group last 
Friday. 

No terms have yet been 
detailed but any bid would 
probably be referred to the 
commission. 


it her 


UK TODAY 

WINTRY showers, some over- 
night frost, windy. 

S. England, Midlands, Wales, 
Central N and NE England, 
Borders, Edinburgh, Dundee. 

Showers, wintry at times, icy 
patches, Max 7C (45F). 

Orkney, Shetland 
Some longer outbreaks of sleet 
or snow, wind cyclonic. Max 3C 
(37F). 

Rest of Scotland, NW England, 
N Ireland 

Wintry showers, clear intervals, 
frost, strong to severe gales. 
Max 5C 141F). 

WORLDWIDE 


U.S. industry index 


Continued from Page 1 


figure reflected “a rebound in 
activity from the sharply 
curtailed output levels that 
re.?uJted in part from severe 
January weather.” The produc- 
tion index was still 1 per cent 
below the December level and 
6.0 per cent down on February 
last year. 

Production increased in all 
sectors, including the car 
industry. Tnere the rise was 
14 per cent in the month after 
falling to a 23-year low in 
January. March production, 
however, is expected, to be down 
again. 

Consumer durable produc- 
tion. which fell by 2 per cent 
in January, rose by 1.7 per cent 
last month. Output or construc- 
tion materials rose by 2.1 per 


cent, but was still 16.1 per cent 
down on the level of 12 months 
ago. 

Dr Kaufman, urging fiscal 
policy changes later, said the 
Fed should drop its monetarist 
approach unless the country 
was prepared to accept 
numerous defaults and bank- 
ruptcies. 

Recent upward pressure on 
interest rates in the U.S. which 
has prompted the prime rate 
rise seems likely to com pi Lease 
further European attempts to 
lower interest rates. 

The Bundesbank. West Ger- 
many's central bank, is to hold 

one of its regular fortaightiy 
council meetings today, Jt" had 
been hoped the bank would 
case its monetary policy and 


perhaps lead the way to lower 
] ate rest. ra;es in West Germany. 

The domestic background for 
.such a step seems favourable. 
Early indications suggest a 
ir.odert settlement in the annual 
war& round ihis year and signs 
o: inflation easing. The b.ink 
:n. the pi.-t week has encouraged I 
expectation* of lower rates. | 
Some co rr. mere; a! hanks cut 1 
lending charzes this week. j 

However, wish the D-Mark j 
slirhtiy weaker again Yesterday i 
at aVr- DM 2.3? to the dollar 
and U.S. interest rates rising, 
“he ini^rnat'nr.nl financial situa- 
tion may inhibit the bank from 
anything more than at nest a 
modest casing in the jpecfol 
Lombard rsie which stands at 
10 per cent. 


Ajaccio S 
Algiers F 
Amsdfn. F 
Athens F 
Bahrain C 
Barclnj. C 
Beirut C 
Belfast F 
Beijrd. C 
Berlin C 
Biarritz S 
Bmghm. C 
Blackp'l R 
Bordx. C 
Bouljn. C 
Bristol C 
Brussels F 
Budpst. F 
C3'fO C 
Cardiff F 
Cashc.i. F 
Case T. S 
Chics. t C 
Coloine C 
Crnln;n R 
Corfu S 

Convert F 
PnM.n R 
n-f.nl . s 
C 

'"o F 

ri-'enr, *5 

-rvi! I 1 - C 
C..--h3l C 
Or.»v o C 
n.Wlir. P 


In-.-nss C 
I.o Min 
M’lntvjl ft 
J«rw» f 

JO l 'il— | P 

L. PI-5. R 
•.iihr-o S 
Lcc.imo F 
London R 


Vday 

midday 

■C *F 

14 57 L Anfl.f 
20 68 Luxmbg C 
9 43 Luxor S 
13 55! Madrid S 

20 63 1 Majorca S 

13 55 I Malaga S 

17 63 1 Malta F 
5 41 Mchstr. F 
9 43 Melbne 

12 54 Mx. C.f 

14 57 Miami! 

7 45 Milan S 

5 41 Monir'lt 
12 54 Moscow F 

6 43 Munich S 

7 45 Nairobi F 
9 48 NegfeB S 
9 48 Nassau 

23 73 Nyrnil. C 
B 46 N Yorkt 

18 64 Nice S 

21 70 {Nicosia 

5 41 n„orto C 
9 <8 n-.lt> R 
4 39 ! Poric C 

15 59 j Dqrr*) S 

4 39 1 or-nue S 
7 45 1 o-i ,„lt . R 

12 C 

5 41 ; n;„ i- 0 t 
17 Sn... R 

13 5K f-i-s-f. F 

7 « c-i-nt 

13 01 | c 

3 48|<S.ff»n r 
17 K3| 

4 30 e-vlim F 
9 aS'e-p-cH-n B 

12 S4 , |'r-1 A-4v P 
« p 

— — li-nVvn 

R f’lT^r'nrqf F 

tO V1|T,ini« <1 

nc 77 W.l.n Bil 9 
20 F9|Vn„iC0 S 
15 5*t I W.enn.n K 
9 4Sj , V(ir3>aw R 

5 41 (Zurich C 


New horizons for 
Guinness Peat 


As tbe pall of twitigbt bangs 
over British industry, financial 
servicer companies flicker in 
tbe firmament. The investor 
with a telescope soon learns 
their characteristics — tbe 
energy-emitting Mercantile con- 
stellation, the money-broking 
comet, -and a wan, tallow- 
coloured body that hangs over 
Lake Michigan. All of them 
stars or potential stars, and all 
subject to embarrassing short- 
ages of equity. 

Strange in tera tell ar conjunc- 
tions sometimes occur. After 
making £13£m of attributable 
losses in the six months to 
October, ofe financial service 
company (VSC), Guinness Peat, 
has sold its investment in tbe 
American FSC Unitel to 
another Unitel shareholder, tbe 
FSC Exco International. FSCs 
are full of goodwill, of course, 
and for Exco to borrow to take 
its Unitel state, above 50 per 
cent and then have to consoli- 
date Unitel’s debt could have 
turned it into a shooting star. 
So a placing of Exco paper has 
been arranged; the public float 
ofg Exco rises by 27 per cent, 
and it 'ends up with 49.9 per 
cent of Unitel. 

The telescope should really be 
focussing on Guinness Peat, now 
selling an Interest which a few 
months ago was said to be 
central to its strategy for the 
1990s. In fact GP*s shortage of 
cash following its commodity 
losses in Chicago prevented it 
from taking a controlling 
interest in Unitel, and it was left 
with a trade investment that 
paid no dividends. 

It now clears £18}m cash and 
an £SJm book profit which goes 
some way towards topping up 
reserves. A further £30m or so 
of disposals are on the way, 
which should allow nearly all 
the centra] debt (as opposed to 
borrowings related to com- 
modity trading) to be repaid. 
Potential book losses have 
already been provided for in the 
first half figures, and so has the 
terminal loss in Chicago— but 
I not the profit on Unitel. 

The scope for tidying up GP 
is considerable — already capital 
employed in merchanting and 
chemicals has been cut from 
£35m to £7 *m. and profits 
Increased. When the degearing 
is complete, GP wDl have an 
insurance. commodity and 
miscellaneous FSC business 
capable of earning, say, £8m pre- 
tax in a reasonable year for 
commodity volume, and a mer- 
chant bank for which offers 
pushing £40m have been refused. 

At the moment there is no 
dividend, and very little credi- 
bility. Still, the red ink in 


Index fell 3.4 to 562.4 


GQINNESS 

PEAT 

SHARE PRICE 


J FMAMJJAjONDJ FM 

1981 1982 


yesterday's profit and loss 
account reflects, not general 
decline, but vigorous and long 
overdue corrective avtion by the 
chief executive. The .market 
capitalisation of £45 jm at 68p 
is unrealistically low. 

BAT/Marshall Field 

Having received the unwel- 
come- attentions of Mr Carl 
Icahn, WaU Street's earliest- 
rising -professional dawn-raider, 
the Chicago-based department 
store group Marshall Field has 
been induced to come to terms 
with BAT Industries' U.S. sub- 
sidiary. A trader offer of $25i 
a share ■ — against Friday’s 
closing price of $22 — is to go 
ahead, valuing -Marshall Field 
at $310m. That is roughly 
equivalent to historic cost asset 
value, and around 13} times 
earnings, which in the UK would 
be a cheap way into a. major 
retailer. 

BAT has proved itself a much 
more successful shopkeeper in 
the U.S. than in British High 
Streets, and it is confident that 
its Saks management can spice 
up Marshall Field’s rather staid 
margins. If it gets hold of the 
company — winch is fay no 
means certain — the proportion 
of group assets in the U.S. will 
rise to roughly 50 per cent, and 
so will the debtOequity ratio, 
since Marshal! Field has roughly 
$12Qm of long-term borrowings. 
BAT can live with that, but its 
shares are nearly double their 
1981 low and a rights issue 
would not be surprising. 

Brooke Bond 

Brooke Bond has buffed and 
puffed to puSh its profits up— 
so far to no avail.' After a 
bewildering number of acquisi- 
tions and disposals, profits fur 


the half year to December 
work out slightly lower at 
£18.9m pre-tax and the full year 
is unlikely to show any advance 
on the 1980-81 figure of £41. 7m. 

The purchase of Maitynson- 
Deony has proved even more 
troublesome than expected. A 
trading profit of £4.9m has con- 
verted into a loss of £2m after 
direct funding costs, and that 
takes no account of dilution 
from the equity element of the 
deal. Matiipson’s working 
capital has been heavily pruned 
but Brooke Bond’s net debt of 
£163m still represents half of 
shareholders funds and the 
interest charge has trebled. 

The second six months will 
see the benefit of disposal 
proceeds totalling £22 m and 
some gains from a higher tea 
price. The first half was hit by 
t fee £2.5m Brooke Bond spent 
to launch, its Red Mountain 
coffee brand, so coffee should 
make less of a dent on the 
revenae account in the current 
period. Yet, operating pre- 
dominantly in mature markets, 
the company is bound to incur 
costs on this scale . from time 
to time and has still to show 
that it can break through to a 
sustainable new earnings 
plateau. The shares have not 
yet shed their dowdy image and. 
after yesterday’s 3p fall to 54p. 
they were back on a double digit 
yield of 10.6 per cent 


It is now a year since TMI 
came to its shareholders with 
a heavy 2 for 7 rights issue, 
committing itself to maintained 
dividends on the increased 
capital at a gross cost of £172 m. 
It has now paid up. 

By the standards of the 
engineering industry IMI's 1980 
results were exceptionally good, 
led by sales of titanium to the 
aerospace industry. The com- 
pany’s generous dividend policy 
could really be justified only if 
the rights proceeds enabled 
earnings to leap -ahead. Instead 
1981 pre-tax profits have fallen 
by 15.6 per cent to £23. 8m. 

Moreover, the 1981 figures 
have been flattered by a fall in 
the level of rationalisation costs, 
the decision to stop equity 
accounting losses from zips, and 
interest on the rights money 
amounting to perhaps £2£ra for 
the. year. The underlying drop 
in earnings coulfl be as much 
as a third. 

At 6 Op the shares yield just 
over 11 per cent Cover for the 
dividend is scanty even in 
historic terms; stated current 
soct earnings of O.Sp a share 
emphasise how poor the 
earnings are in quality. 


ZAMBIA COPPER INVESTMENTS LIMITED 

(Incorporat e d m Bermuda) 

RESULTS FOR THE HALF-TEAR ENDED DECEMBER 31, 1981 

The following are the unaudited results of the Corporation and its subsidiaries for the 
half-year ended December 21, I9SI, which should be read in conjunction with the 
accompanying notes. 


Dividend income 

Other income 

Exchange gain (loss) 


Half-year 

Half-year 

Year 

ended 

ended 

ended 

cember 31 

December 31 

30 June 

1981 

. 1980 

1981 

UJ5£OOOs 

U.S.S000s 

U-S-SOOOs 

. 2MC65 

5,842 

5,944 

U78 

IrLIS 

2J)45 

4 

256 

(3,039) 

-3i847 

7,316 

4.940 

- (263) 

(358) 

(625) 

3484 

6£58 

4^15 

(833) 

0,498) 

(1310) 

2,751 

5,460 

2,505 

3J>I4 

1,009 

1,009 

. 6,265. . 

6,469 

3*514 


C— Cloudy. F— Fair, R — Ram. S — Sunny 
t Noen GMT lampcrotures. 


Administration expenses - (263) (358) <625) 

Eanungs before taxation 3484 - 6^58 4,315 

Foreign taxation (833) 0,493) (1,810) 

Net earnings 2,751 5,460 * 2,505 

Retained earnings at beginning of period- ... 3,514 1,009 1,009 

Retained earnings at end of period I. . 6,265. . 6,469 3,514 

Notes 

1. No provision for a possible decline in value of investments has been considered as 
it is the Corporation’s policy to review the book value of investments at the end 
of each financial year. 

2 . Dividend income comprises the final dividends of Nchanga Consolidated Copper 
Mines Limited (NCCM) and Roan Consolidated Mines Limited (Rdf) in respect . 
□f their financial years ended March 31, 19SL No dividend income from NCCM 
and RCM was externalised from Zambia during ,4he period under review rad as 
at December 31, 1981, the Kwacha equivalent net of withholding taxes, of approxi- 
mately U.S.S6.5 million of dividend income from NCCM and- RCM r emaine d blocked 
in Zambia. 

3. Botswana RST Limited (BUST) and BCL Limited (BCL) continue to experience 
serious financial difficulties. In October, 1976, this Corporation granted De Beers 
Consolidated Mines Limited ■ (De Beers) a fixed charge over all its assets as 
security for certain contingent liabilities undertaken by De Beers at that time 
in respect of BUST and BCL. These contingent liabilities as at December 31, ISSL 
amounted to the equivalent of UB4nA969;000. 

4. In the light of the abovemeutioued circumstances the directors have decided not 
to declare an interim dividend in respect of the fi n ancial year ending June 30, 1982. 

5. With reference to the circular to members posted on .February 25, 1982, and the 
subsequent special general meeting held oa March 16, 1982, the members approved 
the resolution authorising the directors of the Corporation to procure that zci 
Holdings Limited rad Security Nominees limited, which companies hold the Cor- 
porations’ Interests in NCCM and RCM respectively, vote ip favour. of the resolutions 
to be submitted at the various meetings of the shareholders .of NCCM and RCM 
convened for March 17, 19KJ, for the purposes of implementing the merger of the 
two companies and ancillary arrangements. 

6. The reports of NCCM and RCM for the 9 maiths to December 31, lSSL-weze s ed 
with tbe circular to members posted on February 25»'2£6&; : 

Pembroke, Bermuda •' •'*' ••. - - ! /T:- 

March 16, 1982 : - ‘ '.V* 1 ' 


" Reproduction el the contents o! ihn newspaper In any men tier Is not psnnictMl wttfteut dw pufcDainr.’* 

Registered at tha Post Office. Printed by. SL^ ClcmantTa P«ai Imr and puWisiuiff fay/ tfe* RnaariaJ Times Ltd 
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